Best Unveils U.S. Numbers on Regulation

The 50 U.S. states, Puerto Rico and the District of Columbia are projected to spend more than $1.54 billion in 2009 on the regulation of insurance, reports Best’s Review magazine.

Its September cover story, “The Cost of Regulation,” takes a close look at the regulatory budgets as reported to the National Association of Insurance Commissioners. Regulatory spending varies widely state to state, reports Best’s Review. It ranges from a 2009 projected high of $30 per resident in Delaware to a low of $2 per resident in 11 other states. Industry observers almost unanimously agree that states that spend the most aren’t necessarily the most active in protecting consumers, nor are states that spend the least the easiest regulatory environments in which to do business.

“A large budget doesn’t always equate to better regulations,” said former North Dakota Insurance Commissioner Jim Poolman. “It is about focused consumer protection. As more states work together and share resources, these figures will matter less because much more of state insurance regulation will be better coordinated.”

A September bonus. This month a copy of The Guide to Understanding Insurance Ratings is polybagged with this issue. With a look at solvency and an overview of Best’s Credit Ratings, the guide can help those insurance agents and brokers who need to explain how financial strength is measured.

Try out a Best’s Review Video Experience. Get the inside scoop by watching Best’s Review’s editors talk about their September stories at http://www.bestreview.com/videos.

September’s other HIGHLIGHTS:

—Agents—are you prepared to keep your business going after a disaster strikes? Read “High-Tech Prep” and find out which software-based planning tools can help you keep your agency open for business as usual.

—In “The Young and the Restless” find out how health insurers are marketing to twenty-somethings.

—Life insurers are expanding into foreign markets. In “Foreign Policies” discover which countries are boosting growth and diversifying revenues.

—Don’t miss the A.M. Best rankings of the top U.S. life writers by lines of business.
Best’s Review is published by the A.M. Best Co. for insurance professionals, including home office executives, agents, brokers and others who are affiliated with the industry, such as bankers, lawyers and educators.

To read these articles and more, subscribe to Best’s Review by visiting www.bestreview.com , calling the A.M. Best customer service department at (908) 439-2200, ext. 5742, or e-mailing your request to customer_service@ambest.com.