Update on Trends toward Modernizing Rate Regulation

The Insurance Information Institute (III) came out with an issue update in which it identifies a trend by regulatory agencies in jurisdictions across the nation moving toward stream-lining the rate regulation process and relying more on a competitive rating environment (as opposed to the prior approval system we have in California) to keep rates low for consumers.  (The issue update can be found here.)   The update contains very interesting information, particularly in that it indirectly highlights the inefficient and typically expensive process now in place in California under its prior approval laws.  In light of the CDI's recent reinitiated discussions and pending workshop to augment and/or clarify what it has observed as unclear variance regulations (which were already previously discussed and hashed out in workshop), it begs the question of whether or not California consumers would be better served if California had a streamlined, deregulated competitive rating system.