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Flexible Rate Filing Insurance Rate Regulation as Alternative to Incentive Incompatibility in Prior-Approval

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Author Info
Strauss, Jason

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Abstract

Competition can be an effective regulator of rates in property-casualty insurance markets. While many states have moved to file-and-use or use-and-file provisions, some have adopted flexible rate-filing regulations (flex-rating) as a means of combining competitive forces with prior-approval regulation. This short note proposes a change to flex-rating so that it can be used to gradually transition a state from prior-approval to file-and-use or use-and-file.

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File URL: http://mpra.ub.uni-muenchen.de/11167/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11167.

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Date of creation: 17 Oct 2008
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Handle: RePEc:pra:mprapa:11167

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Related research
Keywords: Insurance; Regulation; Flexible Rate Filing Regulation;

Find related papers by JEL classification:
L5 - Industrial Organization - - Regulation and Industrial Policy
G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies
G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

This paper has been announced in the following NEP Reports:

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This page was last updated on 2009-12-4.

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