Risky Business

Today’s insurance regulation in the United States is at a crossroads: while some segments of the insurance industry are moving away from a state-based approach toward regulation, others favor a greater role for the federal government—despite the opposition from other stakeholders. Written by leading scholars in risk management, this book addresses some of the most important questions facing the future of state and federal regulation of the insurance industry. Insurance regulation in the United States is at a crossroads. It used to be a given that the insurance industry would resist efforts to move away from state-based approaches toward regulation—but no more. Some now favor a greater role for the federal government, while others oppose calls to transition to a federal system. In any case, might not a competitive and innovative system of free-market insurance be preferable to best serve the interests of consumers? The current debate over insurance regulation is increasingly a struggle between competing interest groups and opposing ideologies about the proper scope of government—a conflict that affects individuals’ decisions about how much risk to undertake, whether those decisions involve driving a motorcycle in dense urban traffic or building a home in a flood, fire, hurricane or other high-risk zone. But what types of reforms would best serve the interests of consumers? And what lessons can be learned from previous reform efforts? In Risky Business: Insurance Markets and Regulation, edited by Lawrence S. Powell, leading scholars in risk management address some of the most important questions about the future of insurance regulation and the potential for market-based alternatives. The book examines not only the impetus behind various reform proposals, but also the historical development of insurance regulation in the United States. In so doing, Risky Business examines alternative regulatory and deregulatory frameworks used in the United States and in the European Union, and whether such options are beneficial or not.