Insurers Urge Regulators to Keep McCarran-Ferguson
National News • June 6, 2007
Insurers recently asked state regulators to oppose a bill pending in Congress that would eliminate the exemption insurers currently receive from some federal antitrust laws.
At the National ...
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Subject: RE: Repeal of McCarren Ferguson Act
Posted On: June 6, 2007, 1:30 pm CDT
Posted By: Sam
Comment:
I have to disagree with you on this. Repeal of insurer exemption to McCarren Ferguson may well have the opposite effect, and create monopolies within the industry. When the small and mid-size insurers cannot compete with State Farms and Allstates due to lack of shared information, they either become insolvent or close. That reduces market, thus making the big companies the only business in town. When you're the only business in town, you are a monopoly.
Further, how would the government coordinate changes in forms, policies, rating approvals, CE requirements, licensing requirements and all those other things that go into a state insurance department? The cost would be huge. Who then will oversee such regulation?
While there are some flaws in the system, overall it has worked very well since inception.
Subject: RE: Repeal of McCarren Ferguson Act
Further, how would the government coordinate changes in forms, policies, rating approvals, CE requirements, licensing requirements and all those other things that go into a state insurance department? The cost would be huge. Who then will oversee such regulation?
While there are some flaws in the system, overall it has worked very well since inception.