State to Federal Government – Let us keep on Handling Insurance Regulation
The move to providing new regulation on the area of insurance regulation to avoid future problems such as the ones that are happening now are underway and making good progress. The only problem, the bickering in Congress is taking too long for it to make any difference at all and State governments are fed up. They have expressed their intent for Congress to give them control over the management and regulation of the insurance industry in their respective areas due to their intimate knowledge of the local scenario. The state-based regulatory regime has been in effect for over 100 years and has proven to be effective which crumbled only due to the financial crisis the sub-prime lending market initiated. They want to keep on regulating their own insurance industries locally without the federal government’s meddling which as they have seen, just takes too much time.