Study Results from Cornell University in the Area of Insurance Reported (Regulatory Competition In the Us Life Insurance Industry): Insurance

2026 OCT 02 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Current study results on Insurance have been published. According to news originating from Ithaca, New York, by NewsRx editors, the research stated, “I study competition between state regulators in the US life insurance industry. States compete for insurers by setting lower capital requirements, but the costs of such actions are partially borne by other states.”

Our news journalists obtained a quote from the research from Cornell University, “I document states’ behaviors and insurers’ responses to this competition and its effects on life insurance supply. I develop a quantitative model of the insurance market that captures states’ competition and insurers’ responses. I find that competition leads regulators to set lower capital requirements, which increases default risks but increases consumer surplus by lowering prices.”

According to the news editors, the research concluded: “On net, competition between regulators decreases total surplus and redistributes across states.”

This research has been peer-reviewed.

For more information on this research see: Regulatory Competition In the Us Life Insurance Industry. Journal of Political Economy, 2026. 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 Johnny Tang, Cornell University, Ithaca, NY 14850, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1086/742725. 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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