One aspect of insurance work that keeps carriers, brokerages, agencies and their partners on their toes is the evolving regulatory environment from one U.S. state to the next. For the ninth year in a row, the R Street Institute, a public policy research organization, has graded all 50 states in its Insurance Regulation Report Card with the aim of providing the industry with information and guidance regarding the insurance-business climate in each specific location. The latest report was released in December 2020. Former R Street Director of Finance, Insurance and Trade (and longtime Report Card author) R.J. Lehmann addresses three fundamental questions before arriving at each state's regulatory grade: |

• How free are consumers to choose the insurance products they want?
• How free are insurers to provide the insurance products consumers want?
• How effectively are states discharging their duties to monitor insurer solvency and foster competitive, private insurance markets?

In addition to breaking down specific issues that surfaced in each state, Lehmann further examines such factors as politicization, fiscal efficiency, solvency regulation, individual insurance market performance, and underwriting freedom as part of R Street's annual review. The slideshow above illustrates the eight states in R Street's Ninth Annual Insurance Regulation Report Card that garnered an A- or better based on the factors outlined above. "The insurance market is both the largest and most significant portion of the financial services industry to be regulated almost entirely at the state level," Lehmann writes. "This report demonstrates that, on balance, states do an effective job of encouraging competition and ensuring solvency in insurance markets." The R Street Institute is a nonprofit, nonpartisan, public policy research organization whose mission is to engage in policy research and outreach to promote free markets and limited, effective government. The organization's motto: "Free markets. Real solutions." Related: |

• Which states have the best insurance regulatory environments in 2019?
• What grade does your state get for its insurance regulations?
• School's in session: Here are the 2014 insurance regulation report cards for all 50 states