Competition as a Means of Regulating Insurance

The sole thesis of this paper is that competition among insurers, tempered by state supervision of their financial control, is a workable alternative to active state control of the business of insurance. It is not the purpose of this analysis to question the basic concept and the workability of affirmative government control of insurance. To test this thesis, a case study will be made of the rating process used in the business of automobile liability insurance in the State of Ohio.