State’s insurance regulation earns a B
Hartford may have one time been known as the “Insurance Capital of the World,” but when it comes to regulating the industry, the state earns a solid B. That ranks Connecticut firmly in the middle of the pack, according to a new study.
R Street, a nonprofit public policy research organization based in Washington, D.C., studied insurance regulations in all 50 states. Its regulation report card examines which states do the best job of regulating the business of insurance, by assigning scores in 10 different areas, including monitoring solvency, policing fraud, protecting consumers and fostering competitive markets.
Connecticut’s score was 69.1, which ranks it 25th in the nation. Last year it received a grade of B minus. According to R Street, the state’s insurance regulation strength is the competitiveness of the auto insurance market. The state’s biggest insurance weaknesses are excessive rate regulations and underwriting restrictions.
The report card found Vermont was the best state in the nation for insurance regulation because of its auto and homeowners insurance environments, rate freedom and clarity and regulatory restrictions. North Carolina was the worst with a grade of F, in part due to the state’s inflexible rate bureau system.