Industry News

Property insurance market ‘fraying around edges’

Oxley proposes federal-state partnership to achieve regulatory uniformity

The federal government must take action to fix "critical problems in the insurance marketplace that Congress cannot continue to ignore," U.S. Rep. Michael G. Oxley said today. The health insurance marketplace is "collapsing," parts of the property-casualty marketplace are "similarly fraying around the edges," and insurance market problems are "getting worse" in most states, Oxley, chairman of the House Financial Services Committee, warned. "Insurers are facing increasing competition from other financial services sectors which have significantly lower regulatory costs. Loss pressures are increasing with terrorist threats, mold, natural disasters, etc. And many economists and re-insurers are warning us of increasing volatility in the years to come," he said today in a speech to the National Association of Insurance Commissioners in New York. State insurance regulations aim to protect the interests of people who purchase homeowner's insurance and other types of insurance policies. Ho...