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Survey: Companies Favor Deregulation.

Most companies with sales between $5 million and $100 million favor deregulation of commercial insurance, saying they believe they could negotiate a lower premium for their commercial insurance under competition rather than under state regulation, a business survey said.

The Insurance Research Council's recent survey of more than 1,200 companies found that under deregulation, 61% believed they would be able to negotiate a better premium, with 15% saying they definitely would and 46% saying they probably would.

The council also found that most in the survey felt they had the expertise to operate in an environment with less regulatory oversight of insurance policy forms. Nearly 88% said they were confident they could understand the insurance-related risks they face and judge whether they had sufficient coverage.

In the council's survey, only 10% of the firms said there should be some restrictions based either on size or on the use of a professional risk manager, and 5% maintained that there should be a minimum size requirement.

A majority of the firms surveyed--53%--believed they would receive more customized insurance rates and coverage in a deregulated environment. Only 15% thought that would happen in an environment where insurance rates and forms were regulated.
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Title Annotation:of commercial insurance
Comment:Survey: Companies Favor Deregulation.(of commercial insurance)
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Jun 1, 2000
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