Policy Documents

No. 118 Property & Casualty Insurance Report Card (pdf)

Eli Lehrer –
March 17, 2008

This report card outlines the methodology and results of a joint Heartland Institute/Competitive Enterprise Institute project to produce a 50-state report card on insurance regulation. Idaho, Illinois, Utah, Vermont, and Wisconsin are found to have the best insurance environments while California, Florida, Maryland, Massachusetts, and North Carolina have the worst.

This Property & Casualty Insurance Report Card assigns grades to the 50 states of the United States based on the effectiveness of their property and casualty insurance regulation. Idaho, Illinois, Utah, Vermont, and Wisconsin get "A" grades, while California, Florida, Maryland, Massachusetts, and North Carolina get "F" grades.

We rated states using nine variables. On each variable we established a modal score of zero: States received a score of "zero" on each variable unless they do something exceptionally "good" or "bad" relative to other states.

The states with freer markets, on balance, provide more consumer choice, more predictable rates, and insurance premiums that better reflect actual risk. The states with more restricted markets provide none of these things.