The American Property Casualty Insurance coverage Affiliation (APCIA) just lately launched a report that concludes over-regulation impedes insurance coverage markets
“Insurance coverage markets operate greatest when allowed to function competitively, free from extreme worth regulation,” stated Robert Gordon, APCIA’s senior vice chairman, coverage, analysis and worldwide, in an announcement. “As illustrated within the report, the proof from a number of state case research exhibits that whereas politically interesting, strict worth controls in the end hurt the shoppers they purpose to guard.
“Regulatory fee suppression is perhaps a sugar excessive within the brief time period, however in the long run it devastates the markets and the provision of insurance coverage for shoppers.”
The report, “Price Regulation and its Effects on Insurance Markets: Analysis and Case Studies,” is authored by insurance coverage skilled and College of Iowa professor of finance Dr. Martin F. Grace.
The report examines auto and property insurance coverage throughout a number of states, together with California, Florida, Massachusetts, New Jersey, and South Carolina, by means of case research of rate-related legislative and regulatory actions to deal with market stability. The analysis reveals how insurance coverage markets reply to numerous pressures, together with inflation, pure disasters, and regulatory interventions – considerably impacting pricing, availability, and market stability.
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