Roles:  Academic, Actuaries, Consumers, Consumer Advocates, Lawyers, Regulators, BonkNote

Insurance Regulators

  • Insurance regulation can generally be described in two simple statements.
    1. Insurance regulators want insurers to have sufficient assets to make good on the promises they are selling
    2. and they want insurers to treat their policyholders and claimants right.

The first part of the statement describes what is known as solvency regulation and the second part is known as market regulation.

2011 1205 - NAIC to FIO

  • (p21) - 54. Vicky Saporta, Executive Director, Prudential Policy Directorate, Prudential Regulation Authority (PRA), told us that regulators follow the objectives which they are given, rather than making judgements about social welfare:
    • As a regulator, our objective is not really to make judgments about social choices and what particular activity might promote general usefulness and welfare.
    • We have to do what our objectives tell us to do: to promote financial stability in our case and to ensure that firms are safe and sound and so on, rather than ensuring that each product that firms come up with has a particular usefulness in society.
    • It is just not part of our objectives.62

2022 - House of Commons - Treasury Committee - Future of financial services regulation, First Report of Session 2022–23 - 68p


  • The Academy views its role in the government relations arena as providing information and actuarial analysis to public policy decision makers so that policy decisions can be made with informed judgment.
  • For example, the determination of required contribution levels to plans to provide benefits and the setting of appropriate reserve levels to meet future obligations are actuarial in nature.

1984 - Journal, American Academy of Actuaries