The American Property Casualty Insurance Association (APCIA) recently adopted its Principles of Good Insurance Regulation.
These principles support a regulatory environment that meets the needs of a diverse set of consumers and focus on those aspects of regulation that foster the growth of private competitive markets. Further, they look to balance the demands of accelerating insurance and product innovation while preserving a competitive market. Finally, they call for a regulatory environment that keeps pace as insurance markets evolve.
“APCIA is committed to fostering a state-based insurance regulatory architecture that will expand regulatory flexibility, facilitate innovation, and promote the growth of healthy, vibrant, and competitive private insurance markets in the United States,” APCIA President and CEO David Sampson said.
The principles include adaptable regulatory concepts that will promote effective and efficient insurance markets and regulatory supervision well into the future.
“APCIA recognizes that insurance regulators are tasked with financial solvency oversight while ensuring proper market behavior. These twin pillars of insurance regulation must be balanced. The primary responsibilities of regulation should be to enhance solvency protection and ensure compliance with appropriate and necessary market conduct standards,” the principles state.
The APCIA principles state that good insurance regulation is both effective and efficient, adding that regulatory balance is key.
“Over-regulation can be as detrimental to the marketplace as no regulation. Some level of regulation is necessary to protect consumers and insurers, but excessive regulation of price and product can impact affordability, limit availability, and slow the ability of insurers to innovate and meet consumer needs for new products and services. In promulgating regulations, consideration must be given to unintended market consequences for both insurers and their customers,” the principles state.
APCIA is the primary national trade association for home, auto, and business insurers.
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