Study Urges Quick Action on Insolvent Insurers

Regulators should act promptly to liquidate insolvent insurers to minimize harm to policyholders, a new industry study said.

“Minimizing public harm usually means taking insolvent insurers out of the marketplace promptly,” said the study, released by the National Assn. of Insurance Brokers.

President Martin McFadden said the association was concerned by the growing number of insolvent insurers.

About 140 property casualty insurers failed between late 1969 and 1986, with 42% failing since 1983, Congress’ General Accounting Office reported last year.

“In the real world, there are significant pressures which encourage regulatory delay.