All Commentary
Monday, May 9, 2011

States Attract Insurance Companies with Easier Regulations

“Vermont, and a handful of other states including Utah, South Carolina, Delaware and Hawaii, are aggressively remaking themselves as destinations of choice for the kind of complex private insurance transactions once done almost exclusively offshore. Roughly 30 states have passed some type of law to allow companies to set up special insurance subsidiaries called captives, which can conduct Bermuda-style financial wizardry right in a policyholder’s own backyard.” (New York Times)

It’s not enough to deregulate; anticompetitive privileges like licensing must also go.

FEE Timely Classic
“The Government Licensing Scam” by P. Gardner Goldsmith