Mataracy
VIP Contributor
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.
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.