Posted On: June 17, 2005, 5:28 pm CDT

Posted By: Funkie

I can understand why the state insurance commissioners support state regulation - it's their livelihood. However, for anyone else it seems to me to a clear issue of simplification and increase in efficiency by having a single regulator.

State regulation is the cause of most of the problems in the insurance marketplace. The problems are too numerous to go through them all, but here are a couple. First, how many Louisiana insurance commissioners have gone to jail? You think it makes sense to have corrupt local officials in charge of this area? Second, the insurance commissioner in 12 states is an elective office. Tell me why it makes sense to elect the insurance commissioner. Might just as well elect the bank examiner.

State regulation does little good and considerable harm in terms of a less efficient marketplace. The sooner it's done away with the better off most of us will be.