Self Regulation of Insurance

[Mataracy]

To the extent that a business provides adequate self- regulation for itself, government regulation is often unnecessary, or at least diminished in some degree. In insurance it is not realistic to think that the entire job of regulation can be done by internal, as opposed to external methods of supervision.

In fact, the extent of self-regulation will depend on the cooperative action of the insurance institutions. Indeed many insurance and trade association groups and committee exist in the market which exercise considerable control or advice in respect of each of the major functions of insurance business.

However, the privilege and the responsibility of cooperative action do not exclude government regulation of the group or of the individual members.

Self-regulation is no palacia(not something that can solve allvthe problem) ;it works in some parts of insurance extremely well, whilevin others,it is disappointingly ineffective.

Particular examples of difficult area for regulation are many aspects of insurance which are closely related to competition, sucg as regulation of production costs, commissions, advertising and rates.

 

[btaliat]

Insurance companies still have the capacity to control themselves even without governemnt intervention. In fact, governemnt only serves as intermediary between the insurance company and the insured people. Becuase there may be clash between the interest of the two which the government aims at solving amicably and not really to control them.

 

[Mandy96]

I really do not know if clients are expected to do a self-regulation. But this thing is really not known by most of the insured because even some of them do not really know much about insurance and that is why they are offered to consult an agent or a broker

 

[btaliat]

There should be regulation in any company being private owned or public owned. The regulations will let them know where they are getting it right or wrong. However, the evaluation can be done by the internal body or external body. In some instances, governemnt does intervene in the activites of some companies especially insurance

 

[Jamoflondon]

I think the best regulation is made by oneself. You should try to check yourself before you go to the public. This is very important because it gives the chance to know what you really do not know about I mean the things that you were not aware of. Don’t be told before you do it

 

[Ivo Zetticci]

lack of practical knowledge pushes a trader towards recurring losses. For practical knowledge, you have no option except trading on demo account. Traders should take time to understand the market properly. FXOpulence offers a free demo account so traders can practice on here.