In the Sept. 11 edition of National Underwriter, Joseph J.Beneducci, president and chief operating officer of Firemans FundInsurance Company, argues that optional federal charters willreinvigorate the property-casualty insurance industry. Clickhere for the full story, and then come back to my blog tocomment.

I, frankly, have not made up my mind, but my inclination is tostick with state regulation, period. After all, the federalgovernment certainly has dropped the ball on regulation in thepast. And while there are obvious advantages for national andinternational carriers to having a federal charter, it also opensthe possibility of answering to a crusading federal czar withenormous power over the industry--as I mentioned in my blog entryof Sept. 5.

Supporters of federal regulation should also consider the factthat while a Federal Bureau of Insurance (another FBI!) will nodoubt start out modestly when it is still on the drawing board,history indicates that it will become a bloated bureaucracy beforetoo long.

Still, I understand the frustration that carriers andmulti-state brokers feel in dealing with multiple regulators, andcan appreciate the lure of the utopian notion of a single master.I'm just not yet convinced this is the wisest move to make.

Mr. Beneducci is convinced that it is the best course, and makesa strong case. Check out his "Final Say" column and tell me what you think.