Monty Python Allusion Alert

Tulsa World: OKLAHOMA CITY – The Oklahoma Insurance Department apologized Thursday for what it described as “an unauthorized draft of an e-mail” about an upcoming tornado summit that contains “offensive and unacceptable language.” The email about the National Tornado Preparedness Summit, set for March in Oklahoma City, includes a slang term for women’s breasts in [...]

Insurance and the Commerce Clause

I leave it to others to debate Monday’s federal court ruling that says the federal government can’t require a person to buy health insurance. I just find it interesting that this isn’t the first time that insurance, the Commerce Clause of the Constitution and the state of Virginia have met at a crossroads. Last time, [...]

Behavioral economics among regulators

Arnold Kling, blogging at Library of Economics and Liberty, points to this Matt Ridley paper, which explores how the behavioral economic phenomena that clutter free market theory also can apply to regulators. Recall behavioral economics studies how people do not always act rationally to maximize wealth (or more formally, their utility function). For example, given [...]

NAIC formally OKs medical loss ratio rules

Via NAIC News Release. A lot of hand-wringing in the media over today’s vote, but my sense was things were pretty well set up weeks ago. Now HHS must formally accept.

Solvency II: When, oh, when?

Solvency II has always seemed a bit rushed by this observer on the left side of the Atlantic. Now Reactions offers free commentary that at least one Aon executive predicts delay of another year. Writing an op-ed in the Baden-Baden Reporter, which will come out at the conference next week (and go online then), Aon [...]

NAIC OKs medical loss ratio rules

NAIC News Release: MLR Passes. The rules go to the fed for the final verdict. Model regulation here. NAIC letter to the feds is here.

The Quinn shortlist – Zurich and Allianz?

In the face of reports earlier this week that Liberty Mutual, Travelers and Anglo Irish Bank were on the short list to take over capital-weak Quinn Insurance, the Irish Financial Regulator announced that it would not be telling who is on the short list. Laura Noonan at the Irish Independent has the story. Meanwhile, she [...]

Financial reform – impact on insurers

Most insurers were relieved to hear the received wisdom on financial reform – the industry dodged a bullet, as it wasn’t subject to the same scrutiny as banks. With good reason – p/c insurers weathered the financial storm well (excepting AIG’s foray into non-regulated, non-insurance products). Milliman, however, has a more nuanced view. Its take: [...]

Follow the rules that aren’t quite written

At a Reactions magazine insurance event, U.S. regulators showed their frustration at having to qualify as Euro-compliant. Quoth FL Commissioner Kevin McCarty: Solvency II is a theoretical standard – it is not in place yet. It is difficult to say what effect Solvency II would have, because it is not yet implemented, whereas we have [...]

Medical loss ratio – finish line approaches

An NAIC subpanel lays the groundwork for approval of health care reform’s medical loss ratio requirement, The Hill reports. Issues that remain: – Aggregation: The draft regulation calls for the medical loss ratio to be calculated for each company by state. The large-group health plans want to be able to aggregate nationwide, Webb said; – [...]