the fed will do for ins as they did for the savings and loan inds.,and banking. yeah, put ins in the hands of the lobbyist of wash. we have the best fed. government that money can buy.
I don’t see how the feds could do a worse job than the various states are doing.
New Jersey and Massachusetts auto, Florida homeowners and California earthquake are all examples of jury-rigged, inefficient regulatory schemes in the face of serious problems. Even where there are not serious problems inefficient regulation costs companies, agnets and insureds in terms of time, money and quality of coverage.
I have worked for national stock carriers, regional mutuals an d now a small local mutual insurer. All insurance is local, the closer that it is regulated to the consurmer the better. Each state is different, and even in 1 state there can be different issues in different areas. The states do a great fob of regulating insurance, anytime the federal government gets involved, speed and flexibility are compromised.
Although I concur that the current system of regulation is not the most efficient I will state that giving anything else to Washington is not only short sighted but foolish. The federal government is already too big and ineffective. In my simplistic and utopian view, we need to eliminate regulation of form and rate on all commercial insurance and let the market dictate what will happen. The personal lines consumer should be given the choice of regulated or non-regulated companies while still having the benefit of protection in the form of guarantee funds. The purpose of regulation should be to ensure the solvency of carriers and be a point of assistance in the event of consumer complaints not to dictate every form and rate.
Will this ever happen in my lifetime, probably not, but one can hope. Giving oversight to the fed will gain the industry nothing in efficiency, other than one set of rules regardless of risk location. Nevertheless, can you imagine what that set of rules would look like based upon other federal programs. Just look to the tax code of this country if you need proof that the fed can do nothing but make a mess for everyone.
Dave:
You must not live or work in Massachusetts…
the fed will do for ins as they did for the savings and loan inds.,and banking. yeah, put ins in the hands of the lobbyist of wash. we have the best fed. government that money can buy.
I don’t see how the feds could do a worse job than the various states are doing.
New Jersey and Massachusetts auto, Florida homeowners and California earthquake are all examples of jury-rigged, inefficient regulatory schemes in the face of serious problems. Even where there are not serious problems inefficient regulation costs companies, agnets and insureds in terms of time, money and quality of coverage.
It’s time to give the Feds a chance.
I have worked for national stock carriers, regional mutuals an d now a small local mutual insurer. All insurance is local, the closer that it is regulated to the consurmer the better. Each state is different, and even in 1 state there can be different issues in different areas. The states do a great fob of regulating insurance, anytime the federal government gets involved, speed and flexibility are compromised.
Although I concur that the current system of regulation is not the most efficient I will state that giving anything else to Washington is not only short sighted but foolish. The federal government is already too big and ineffective. In my simplistic and utopian view, we need to eliminate regulation of form and rate on all commercial insurance and let the market dictate what will happen. The personal lines consumer should be given the choice of regulated or non-regulated companies while still having the benefit of protection in the form of guarantee funds. The purpose of regulation should be to ensure the solvency of carriers and be a point of assistance in the event of consumer complaints not to dictate every form and rate.
Will this ever happen in my lifetime, probably not, but one can hope. Giving oversight to the fed will gain the industry nothing in efficiency, other than one set of rules regardless of risk location. Nevertheless, can you imagine what that set of rules would look like based upon other federal programs. Just look to the tax code of this country if you need proof that the fed can do nothing but make a mess for everyone.