Each year, the public policy research organization issues its Insurance Regulation “Report Card”
R Street Institute, the non-profit, non-partisan public policy research organization, has issued its annual Insurance Regulation Report Card. Now in its 11th edition, the “Report Card” has been grading state regulatory systems since 2012.
Since the insurance market is one of the largest and most significant financial service industry sectors that is still solely regulated at the state level, the Report Card is aimed at testing “…which state regulatory systems best embody the principles of limited, effective and efficient government.” The organization emphasizes that the report is not intended as a referendum on a specific regulator but rather “… our best attempt at an objective evaluation of the regulatory environments in each of the 50
states.”
To achieve that goal, R Street asks the following three questions in analyzing a state’s regulation of its insurance industry:
- How free are consumers to choose the insurance products they want?
- How free are insurers to provide the insurance products consumers want?
- How effectively are states discharging their duties to monitor insurer solvency, police fraud and consumer abuse and foster competitive, private insurance markets?
Massachusetts Makes A Complete U-Turn From Past Years
Typically, Massachusetts has received a C or D grade since the inception of the report card. In a surprising turn of events this year, however, the Commonwealth earned an “A” from the Institute.
How did other states in New England do?
They ran the gamut. Maine and Vermont both improved their 2022 scores from a B to an A-, while New Hampshire’s 2022 B score stayed the same. Connecticut, on the other hand, improved its 2022 “C” score to a B. Rhode Island got the worst marks, unfortunately, receiving a D+ after having scored a C+ back in 2022.
For those interested in receiving the Report Card, which ranks all 50 states, a copy is provide below:
