For over 100 years the Federal role in insurance regulation has been limited to the states by the U.S. Supreme Court.
However, there are several legislative proposal making their way to Congress that are seeking to change that; to regulate the insurance industry on the National level.
What does that mean for the industry and our customers?
FOR INSURANCE CARRIERS it means increased costs to comply with regulation and it makes it more difficult to challenge questionable claims.
FOR CUSTOMERS it means increased premiums. Studies show that increased regulations in auto and homeowners insurance, for example, lead to higher consumer premiums and consumers normally do not benefit from regulations.
I am interested in hearing what others think about insurance regulations going to the National level.