Insurers face increasing competition from financial institutions for products the insurers alone once provided. The 50-state regulatory model has put the insurance industry at a decided disadvantage. Rep. Royce calls for passage of the optional federal charter (OFC).
The OFC levels the playing field, modernizing the insurance industry and allowing it to be competitive both domestically and globally. In our recent 50-state study of property and casualty insurance regulation, we found that the availability and quality of insurance products improved most when regulatory barriers to entry and competition were reduced. Consumers in Illinois and Vermont — two states that encourage competition and don’t attempt to manipulate the insurance market — benefit from having access to more insurance providers than any other states.
The Heartland Institute