General insurance Insurance company and policy regulations

[Phabbyfundz]

Insurance is regulated by individual states. The move to modernize insurance regulation is been driven in part by the globalization of insurance services. Some large US company that operate in other countries supports the concept of a federal system that provides one stop regulatory approval while others believe the merit of a states system out weighs the virtues of a single national regulator.
As a result of the discussions about the merits of each system the states are making it easier for insurers to respond quickly to market forces. States monitor insurance company solvency. One important function related to this us overseeing rate changes. Rate making is the process of calculating a price to cover the future costs of insurance claims and expenses, including a margin for profits.
To establish rates insurers looks at past trends and changes in the current environment that may affect potential losses in the future.

 

[Mandy96]

The policy regulation is what make up the insurance itself. Anybody that wants to purchase or is already on the plan should know this. It contains what the insurance covers and what it does not. It also tell about the limitations, that is, where the coverage reaches. Clients should not overlook this

 

[btaliat]

This may differ from country to country. The government in some states only regulates the ways and functions of the insurance company and not directly involved in insurance company.. In my country for instance, there is National Insurance Company of Nigeria which regulates the activites of the insurance companies that we have.

 

[Wisdom01]

I think most times too when calculating the rates that would be paid they also consider important things like inflation and would be noted as time goes , because they need to determine the premium payable as regard the current currency value ,in that way they can't look at past trends but current

 

[Mataracy]

I think why there is company regulation is that; it will help the company to maintain the standard lay down during their operation. This will also help them to deal with any loops hole that may eventually affect the company may be through the insured or those who are taken up their policy.

 

[Chibson]

Policy regulation is very important in insurance in order to avoid fraud and problems generally. Different states have different insurance policies and I think a move to have a federal insurance policy will be much more effective and understandable. The state insurance policies are also working but I think the Federal will be much more effective.

 

[Good luck]

There is always a guideline to follow when it comes to any policy one is into.there is rules and regulations to avoid violation,which can lead to offence and one can be penalized for such act.it is very important to follow insurance regulations so as to know when one needs to pay every dues,especially when it is time to pay premium.

 

[Wisdom01]

Policy regulation is very important in insurance in order to avoid fraud and problems generally. Different states have different insurance policies and I think a move to have a federal insurance policy will be much more effective and understandable. The state insurance policies are also working but I think the Federal will be much more effective.

Yeah policy regulation is of course important , most people have lost their Savings due to fraud activities and they don't want to keep losing their investment on a frequent basis , that is why the government are the ones to actually help create a working bodies and laws to regulate the insurance company more too