When lawmakers passed a bill reinstating Florida's motor vehicle no-fault law last year, it was one of the hollowest outcomes handed to carriers in recent memory, only to be eclipsed by the changes to the property market won by Governor Charlie Crist. After lawmakers inserted a provision into the insurance code calling for the mandatory coverage to sunset as of Oct. 2007, it became clear with each passing year that the deadline was arbitrary. It functioned to sideline the issue, while workers' compensation, medical malpractice, and homeowners' reforms were addressed.

Yet, even as carriers such as State Farm eventually failed to convince lawmakers to jettison the PIP system and other trade groups fell short of securing comprehensive reforms, it has had no noticeable effects on the market. "In my 33 years in the industry, this is most competitive market I've ever seen," said Scott Johnson, vice president of the Florida Association of Insurance Agents.

Just how competitive is the market? Currently, there are more than 350 carriers writing coverage in the state, representing some $12 billion in direct written premiums. Of that amount, $2.5 billion is attributed to the direct written premiums for PIP coverage. The Department of Highway Safety and Motor Vehicles estimates that there are more than 12 million private passenger autos registered in the state, 94 percent of which have the mandatory PIP coverage, leaving just six percent uninsured. Experts say that those individuals are uninsured by choice, not because they are lacking places to secure coverage.