The regulatory Death Spiral: Why Price Regulation of Homeowners Insurance Means Consumers Pay More

ACI has just released an extensive study on the consequences of price regulation of insurance.  It finds that regulated insurance prices eventually become higher than they would have been, had no price regulation been in effect.  In other words, price regulations fail miserably for consumers, lead to higher industry costs and eventually higher consumer prices.  Furthermore, inadequate premiums lead to insolvency, which means that some consumer claims will not be paid.  Price regulation leaves consumers worse off.   In the end, consumers find themselves paying more for less. 

The empirical evidence can be found in the study (linked below):

  • Click here for the full study
  • Click here for the news release
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