It is no coincidence that when free markets encounter turbulence, stability in the regulatory environment suffers as a result. In fact, the insurance industry has been mired in a most significant regulatory debate since well before the current recession.
Accordingly, the creation of a federal regulatory authority for insurance, in some form, continues to gather steam. Even some state regulators recognize the importance of a more coordinated regulatory structure.
Those involved in the insurance industry who historically have opposed regulation want it further deregulated, and seek the involvement of direct federal oversight. Those who think regulation is necessary support improved modernized and effective reforms to the current state system.
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