R Street Institute releases annual insurance regulation report card.
How Do Tennessee’s Insurance Regulations Rate?
Tennessee earned an “A-” grade and 7th nationwide ranking for insurance regulation, according to the 2015 report card released by the R Street Institute.
R Street, a nonprofit dedicated to free market solutions, seeks to answer three fundamental questions with this annual report:
- How free are consumers to choose the insurance products they want?
- How free are insurers to provide the insurance products consumers want?
- How effectively are states discharging their duties to monitor insurer solvency, police fraud and consumer abuse and foster competitive, private insurance markets?
One key factor for Tennessee’s strong rating—improved from last year’s B rating—was the low politicization involved in the insurance regulatory process. “Insurance regulation is a technical matter and, by and large, should be insulated from the political process and prevailing political concerns…the introduction of political pressure to the process of insurance regulation inevitably leads to negative consequences,” the report said.
Tennessee also scored well with its workers’ compensation insurance market competitiveness and solvency regulation.
The full report can be found here.
