NAMIC ENCOURAGES RATE MODERNIZATION IN HAWAII:

The National Association of Mutual Insurance Companies has told a Hawaii legislative committee that passing rate modernization laws would benefit state commerce and insurance consumers. According to NAMIC State Affairs Manager Christian John Rataj, rate modernization would: Promote greater market competition in the insurance industry; Streamline rate filing with the Division of Insurance; Increase insurance product availability and reduce insurance rates; Reduce the incentive for the federal pre-emption of state insurance legislation; and Improve the efficiency and accuracy of insurance underwriting and claims adjusting. “The United States’ economy is founded upon the premise that free-market competition is fundamental to capitalism and that government regulations in the marketplace should be designed to promote open and effective market competition for the benefit of the consumer,” he said. “Unfortunately, many states, with the intent of protecting consumers, have used government regulations to restrict open and effective market competition.” Over the past three years, 12 states–Alaska, Louisiana, Massachusetts, Minnesota, Nebraska, New Hampshire, New Jersey, Oklahoma, Rhode Island, South Carolina, South Dakota and Texas–have adopted some form of regulatory modernization. Hawaii currently has a prior-approval rating system, but NAMIC is applauding the state legislature for “exploring the idea of adopting some form of rate modernization as a pragmatic mechanism to stabilize and regulate insurance rates, promote responsible insurance practices, and break the perpetual and escalating cycle of regulatory action that has distorted the insurance marketplace to the detriment of the insurance consumer … Studies have routinely demonstrated that rate modernization increases availability of insurance products and typically results in premium savings to the insurance consumer,” Rataj said.

Topics Legislation Indiana