IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v25y2000i4p482-504.html
   My bibliography  Save this article

Insurance Regulation in the Public Interest: The Path Towards Solvent, Competitive Markets*

Author

Listed:
  • Harold D Skipper

    (Department of Risk Management and Insurance, Georgia State University)

  • Robert W Klein

    (Department of Risk Management and Insurance, Georgia State University)

Abstract

The rationale underlying competition is that market forces are best at allocating resources and enhancing consumer choice and value. Further, the evolution and internationalization of financial services markets could significantly promote economic development throughout the world. Thus, moves to render national and international insurance markets more competitive should be encouraged, taking into account the level of development of each market and recognizing the necessity for reasonable safeguards to protect the public. In this respect, the World Trade Organization (WTO) Financial Services Agreement marked an important milestone in the evolution toward competitive markets. However, market access alone does not ensure vigorous, fair competition. Regulatory reforms also are needed. The next step toward structuring insurance markets that better serve the interest of each country's citizens is regulatory reform built on a set of pro-competitive principles designed to ensure competitive, solvent, and fair markets. This article offers such a set of principles that are designed to permit national insurance markets to better serve the public interest. These principles are not an argument for elimination of regulation. In fact, pro-competitive regulation requires a greater – not lesser – emphasis on solvency oversight, disclosure and consumer information, and market monitoring. An insurance market structured around these principles will be one in which regulation is adequate, impartial, and minimally intrusive and, importantly, in which the regulatory process is transparent. The Geneva Papers on Risk and Insurance (2000) 25, 482–504. doi:10.1111/1468-0440.00078

Suggested Citation

  • Harold D Skipper & Robert W Klein, 2000. "Insurance Regulation in the Public Interest: The Path Towards Solvent, Competitive Markets*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 25(4), pages 482-504, October.
  • Handle: RePEc:pal:gpprii:v:25:y:2000:i:4:p:482-504
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/gpp/journal/v25/n4/pdf/2500078a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/gpp/journal/v25/n4/full/2500078a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dionne, G., 2001. "Commitment and Automobile Insurance Regulation in France, Quebec and Japan," Ecole des Hautes Etudes Commerciales de Montreal- 01-04, Ecole des Hautes Etudes Commerciales de Montreal-Chaire de gestion des risques..
    2. G. Dionne, 2001. "Commitment and Automobile Insurance in France, Quebec and Japan," THEMA Working Papers 2001-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    3. Lee, Hangsuck & Ha, Hongjun & Lee, Minha, 2024. "A sharing rule for multi-period interest-sensitive insurance contracts," The North American Journal of Economics and Finance, Elsevier, vol. 71(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:25:y:2000:i:4:p:482-504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.