A Comparison of Insurance Regulation in the U.S. and the European Union

In this project we compare insurance regulatory frameworks in the United States (US) and European Union (EU), focusing primarily on solvency, but also considering product and price regulation, as well as other elements of consumer protection. This comparison highlights the use of more fluid and principles-based approaches in the EU as it is developing under Solvency II, while the US continues to focus essentially on static, rules-based regulation. The discussion further notes evidence suggesting
that the EU approach is more successful in promoting a financially solid insurance sector.

Study for the Independent Institute, Washington, D.C.