Insurance regulation in America – playing out of its league

Purpose – The purpose of this editorial is to consider the effectiveness of the state-based insurance regulatory system operating in the USA. Design/methodology/approach – The editorial begins by identifying two major challenges recently faced by America's state-based regulatory system, and argues that state regulators handled these problems inadequately. It then discusses the fundamental weaknesses of the system. Findings – The shortcomings of the state-based regulatory regime are responsible for its failure to prevent the mortgage-industry crisis from threatening the solvency of at least one major insurance group. Originality/value – The editorial argues in favor of federal oversight of insurance in the USA.Insurance, Regulation, United States of America