Morgan Stanley property-casualty analyst William Wilt said one fear he has in following the Florida deliberations is the possibility that "the insurance industry might be disintermediated in another coastal state."

Mr. Wilt said "blindsided" and "hoodwinked" were among the words he heard from investors in the immediate aftermath of the session.

"Owing to a massive political uprising, reinsurers were disintermediated from a large chunk of business, while primary insurers have been re-regulated to the point that Florida's regulatory regime can now be uttered in the same breath as New Jersey of old," he wrote.

Mr. Wilt then took a shot at the lobbying efforts of the reinsurance industry.

"Investors considering whether to load up on ostensibly cheap shares of reinsurance stocks need to consider whether the interests of the industry are advocated forcefully in the halls of state capitols along the coasts," he said.

Responding to Mr. Wilt, Brad Kading, president of the Association of Bermuda Insurers and Reinsurers, said, "Our voice was there, but we were outnumbered and we were not heard."

Likewise, Frank Nutter, president of the Reinsurance Association of America, told Mr. Wilt, "Our legislative allies who understood the economic consequences of the cat fund expansion and opposed it were shouted down and removed from leadership positions."