Commercial Rate RegulationFor Middle Market Accounts Moves To Washington
Following several years of federal solvency regulation being superimposed on state rate regulation, the threshold for commercial lines rate regulation was lowered to $100,000 annual premium. All commercial accounts above this threshold are subject to negotiated prices.
Implications for p-c insurers:
Marketing-oriented product development is leading to coverage leaks and inadequate rates.
Insurers are scrambling to set prices in the new environment.
Insurers are increasingly becoming involved in Federal political races, moving substantial numbers of staff to the Washington, D.C. area and hiring significant numbers of former members of Congress to assist in lobbying efforts.
The Washington CPCU chapter boasts records growth in membership.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, July 30, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.