The South may rise again, but right now it is mired near the bottom in the R Street Institute’s annual ranking of state insurance regulatory agencies. Keep in mind, though, that the R Street Institute is a self-described “free markets” think tank, so the report is not without a particular point of view.
The 38-page report seeks to answer 3 basic questions:
- 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’s solvency, police fraud and consumer abuse and foster competitive, private insurance markets?
The report was written by R Street co-founder RJ Lehmann. He is a former employee of the Republican Liberty Caucus.
Louisiana ranked next to last in the report, finishing only above North Carolina. Louisiana got a D grade, with 51 points, against a median of about 67. Its number 1 strength was in anti-fraud resources and biggest weakness was the politicization of the office.
New Mexico was the highest ranking southern state, with a B, but even New Mexico ranked only 24
th out of 50. New Mexico received high marks for low politicization and for anti-fraud resources, but got low marks for consumer protection and fiscal efficiency.
Arkansas was just below New Mexico in the No. 25 slot, with the same basic strengths and weaknesses as New Mexico except it was not marked down for fiscal inefficiency.
Oklahoma finished in 38
th, with underwriting freedom as a strength and politicization as a weakness.
Texas came in 47
th, with high marks for a competitive automobile market and low marks for solvency regulation.
