Policy Documents  Ten Principles of Property and Casualty
Insurance Regulation  Matthew Glans and Eli Lehrer – October 1,
2009  Why do we need 10 principles of P&C insurance regulation?
Insurance Is Vital to a Growing Economy  Insurance is one of the
key institutions that make economic prosperity possible.
Properly designed insurance makes the management of risk
possible and, in so doing, makes long-term planning and
investment more reliable. Insurance markets best accomplish
their risk-management function when insurers are allowed to
charge actuarially determined, risk-based rates that accurately
reflect the risk their policyholders incur. When government
regulation interferes with these price mechanisms, the result is
either rate suppression or a redistribution of the cost burden,
resulting in wealth redistribution from policyholders who behave
prudently to those who take greater risks.  Political
manipulation of insurance rates, regardless of its intentions,
distorts the valuable competitive signals of t