Insurance regulation in the US needs to evolve rapidly to meet the demands of the fast-changing industry, international law firm Clyde & Co has said. The nation's body of laws governing insurers was created in the 19th and 20th centuries, and its state-based structure imposes what many now see as artificial barriers to development. In a report published on Wednesday, the firm, which advises clients including insurance companies, said that while there were some "commonsense" rules for regulating insurance, they had been ignored by regulators over recent decades.
Insurance regulation in the US needs to evolve rapidly to meet the demands of the fast-changing industry, international law firm Clyde & Co has said. The nation's body of laws governing insurers was created in the 19th and 20th centuries, and its state-based structure imposes what many now see as artificial barriers to development. Failure to adapt could hamper new insurtech innovation, pushing disruptors to build their businesses overseas in more favourable regulatory regimes, the firm said.