Investigators from University of Wisconsin Madison Release New Data on Insurance (Dynamic Pricing Regulation and Welfare In Insurance Markets): Insurance

2025 AUG 06 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on Insurance. According to news originating from Madison, Wisconsin, by NewsRx correspondents, research stated, “While the traditional role of insurers is to provide protection against individuals’ idiosyncratic risks, insurers themselves face substantial uncertainties due to aggregate shocks.”

Our news journalists obtained a quote from the research from the University of Wisconsin Madison, “To prevent insurers from passing these aggregate risks onto consumers, governments have increasingly adopted dynamic pricing regulations, which limit insurers’ ability to change premiums over time. We evaluate dynamic pricing regulation using an equilibrium model of the US long-term care insurance market, featuring insurers’ lack of commitment and endogenous market structures.”

According to the news editors, the research concluded: “We find that stricter dynamic pricing regulation has a limited impact on improving consumer welfare, while it reduces insurer profits and increases market concentration.”

This research has been peer-reviewed.

For more information on this research see: Dynamic Pricing Regulation and Welfare In Insurance Markets. Journal of Political Economy, 2025. Journal of Political Economy can be contacted at: Univ Chicago Press, 1427 E 60TH St, Chicago, IL 60637-2954, USA. (University of Chicago Press - press.uchicago.edu; Journal of Political Economy - /ucp/journals/journal/jpe.html)

The news correspondents report that additional information may be obtained from Naoki Aizawa, University of Wisconsin Madison, Madison, WI 53706, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1086/735512. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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