Rate Modernization [S]
Consumers benefit from robust competition among many businesses offering similar products and services. Not only are there more services and products to choose from, the costs are likely to be lower because of the competition.
In too many states, however, competition among insurance companies is highly regulated to the point where the benefits of competition are severely restricted. Lengthy, bureaucratic processes are required in such states to justify and obtain approval of insurance rates.
NAMIC supports rate modernization as a pragmatic mechanism to foster insurance competition, promote responsible insurance practices, and break the regulatory cycle that distorts the marketplace to the detriment of the insurance consumer.