Stacy A. Korsgaden

In America, a foundational principle is the freedom to choose, innovate, and prosper. However, excessive government regulation, particularly in the insurance industry, threatens this liberty. Over-regulation has stifled competition, limited consumer choices, and hindered innovation, necessitating action to preserve our broader economic freedoms.

The insurance sector is crucial for Americans and the overall economy but suffers under oppressive regulations. Purportedly meant to protect consumers, these regulations instead increase costs and decrease market options, penalizing consumers. For example, in California, stringent regulations have driven companies away, reducing competition and creating financial instability among remaining insurers. This scenario, where consumer protection turns into consumer punishment, exemplifies the negative impacts of over-regulation.

Excessive regulations not only affect pricing but also stifle innovation within the industry. Insurance fundamentally involves assessing and pricing risk. In a less regulated market, companies would compete to provide the best products at competitive prices, fostering innovation in risk management. However, stringent regulations remove incentives for innovation by setting restrictive pricing and product standards.

This issue is part of a larger trend in American governance where excessive regulations suppress creativity and entrepreneurship, key drivers of our economy. The increasing government involvement in markets reduces economic efficiency and erodes our economic freedoms. This trend towards creeping socialism is prevalent in various sectors, from energy to agriculture, where regulations often cause more problems than they solve.

The solution lies in advocating for deregulation and a return to free market principles. Historically, deregulation, like in the telecommunications industry, has spurred competition and innovation, benefiting consumers with lower prices and better services. Applying this approach to the insurance industry could lead to significant advancements in risk management, including protections against modern threats like cyber attacks and natural disasters.

Deregulation would also uphold our foundational values of liberty and freedom, principles essential to the American identity. It’s imperative to resist over-regulation, educate about the benefits of a free market, and support leaders who prioritize economic freedom.

Restoring a free market in the insurance industry and beyond is crucial not just for economic reasons but for preserving the American way of life. Safeguarding our freedoms for future generations, As Ben Franklin warned, “They who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” Reducing government interference supports this legacy, championing innovation and celebrating enterprise, essential for a prosperous future.