Comparing regulators: elected versus appointed

Article Abstract:

The similarities and differences between elected and appointed insurance commissioners are explored. When dealing with the key areas of insurance company solvency and rate regulation, elected officials are caught between the political popularity of lower rates and the responsibility to protect company solvency. Appointed commissioners have no political need for public recognition and frequently lose touch with the needs of the public.

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Comparing regulators: elected versus appointed

Article Abstract:

The similarities and differences between elected and appointed insurance commissioners are explored. When dealing with the key areas of insurance company solvency and rate regulation, elected officials are caught between the political popularity of lower rates and the responsibility to protect company solvency. Appointed commissioners have no political need for public recognition and frequently lose touch with the needs of the public.

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Reduced commissions

Article Abstract:

Commissions for insurance agents have dropped to 15.8% since 1986, according to a report by Best's Aggregates and Averages. Additionally, insurance companies have been hurt by losses due to natural disaster claims and lower rates of return on investments. Insurance agencies are initiating several cost-cutting measures, such as protecting renewed accounts and altering reward and compensation formulas to make up for financial losses.

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