Property-casualty insurance is among the most heavily regulated industries in the United States.  Additionally, the government’s regulation of insurers isn’t particularly effective and operates within a 150-year old regulatory system comprised of 51 separate jurisdictions, all with their own unique and complicated inconsistencies. 

These regulations are often times government-imposed price and product controls, which prevent insurers from being innovative and reduce important loss prevention and public safety incentives.  These artificial controls also prevent consumers’ access to new and improved insurance products, which hinders business growth and increases costs for consumers.

A comprehensive solution is needed for the archaic and often misguided insurance regulation system that stumbles along in today’s market. 

AIA is committed to expanding the existing bipartisan support in Congress for enactment of a market-based optional federal charter for property-casualty insurers, and to effectuating this long overdue change to the current system.

An optional federal charter would modernize insurance markets by focusing regulatory oversight on effective insurer solvency regulation and strong, appropriate consumer protections.