New NAMIC Report Examines European, U.S. Approaches to Insurer Solvency Regulation
|Targeted News Service|
The new report, "Insurance Regulation and the Challenge of Solvency II:(http://www.namic.org/pdf/publicpolicy/insRegSolvII.pdf) Modernizing the System of U.S. Solvency Regulation," written by
The report is informed throughout by Klein's observation that "tighter solvency standards will tend to reduce the supply of insurance and increase its price," whereas "greater flexibility with respect to solvency requirements allows insurers to offer a wider range of possible product and price options, and allows consumers to incur greater risk in return for lower prices and/or greater benefits." Solvency regulation, he notes, should aim to achieve "optimal balance between insolvency costs and regulatory costs."
"Dr. Klein's objective and unbiased treatment of the ongoing effort to modernize insurer solvency regulation will be enormously useful to insurance industry professionals, media analysts and commentators, and policymakers both in the U.S. and abroad," said
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