Stacy A. Korsgaden

As an insurance professional in California, I’ve witnessed firsthand how excessive regulations entangle the insurance sector, stifling innovation, restricting competition, and burdening consumers with high costs and limited choices. This pivotal sector, crucial for economic stability and personal security, desperately needs a shift towards free-market principles that empower consumer choice and encourage innovation.

My vision for transforming the insurance market involves three key strategies: Correcting Proposition 103, leveraging new technologies, and allowing the industry to deliver tailored, competitively priced insurance products. Overregulation hampers the industry’s efficiency and ability to dynamically respond to consumer needs. Companies spend more time navigating bureaucratic hurdles than innovating or enhancing customer service.

I propose a reform based on the dramatic simplification of regulations, which aims to remove unnecessary complexities. This would free the market to operate more efficiently and responsively. Simplification doesn’t mean abandoning consumer protections; it means making rules clearer and fairer, thus reducing compliance costs for insurers and lowering entry barriers for new players. This would encourage them to introduce innovative products and services.

Technological innovation also plays a crucial role in my vision. I envision a future where artificial intelligence, big data, and real-time analytics tailor insurance products more closely to individual risk profiles and consumer behaviors. For example, fire insurance could be rated not only by the location of a property but also by the mitigations taken by the homeowner and the community efforts to lower fire risks. These should be rewarded by insurance companies fighting for their business, while auto insurance rates could be dynamically adjusted based on actual driving patterns. Unfortunately, Proposition 103, passed in 1988, restricts a company’s ability to discount based on these factors, limiting competition and harming both the industry and the consumers it intended to protect.

This reform would naturally foster increased market competition. As regulatory complexity diminishes and technology lowers the cost of market entry, established insurers are pushed to compete more fiercely on price, service quality, and product offerings. This competition benefits consumers through lower prices and enhanced service quality, as companies strive to offer superior value.

The market must return to a capitalistic structure. The government’s role should transition from regulator to facilitator, focusing on creating a regulatory environment that supports innovation and protects consumers without stifling market dynamics.

To realize this vision, it’s critical to advocate for policymakers who embrace economic freedom and are committed to regulatory reform. This involves supporting amendments to Proposition 103 legislation and actively participating in the political process to elect leaders who will champion these reforms.

Ultimately, this vision extends beyond mere policy changes; it represents a cultural shift towards greater trust in the market and the capabilities of American entrepreneurs and consumers. By reforming the insurance sector, we not only enhance a vital economic pillar but also reaffirm our national commitment to freedoms that enable individuals to manage risks and pursue prosperity.

It’s time to break free from the shackles of over-regulation and champion a market-driven approach that allows the insurance sector to thrive, ensuring it is fair, innovative, and responsive to the needs of the American people.