Insurance Investment Regulation

Insurers are experiencing a time of upheaval and change which involves their ownership and control, their investments, and the regulation of their investments. Many legislative changes are being proposed at the state and federal levels which affect holding companies, solvency, investments of insurers, and the measurement of the profits of insurers. To help provide a background for understanding these problems and evaluating such proposals, this paper reviews the purpose and present methods of insurance investment regulation, describes some of the shortcomings of the present methods, suggests some principles for achieving the purpose of insurance investment regulation, and presents suggested legislation designed to remedy some of the present shortcomings.