Regulating Insurance

If the McCarran-Ferguson Act is modified to remove the insurance industry exemption, the consumer will not benefit as your editorial implies. The fact that the American Insurance Assn. is in favor of removing the exemption should have given you your first clue as it represents the large property and casualty insurers. These companies will no longer have to share their loss data with the smaller companies. The smaller companies and specialty companies will be forced to hire actuaries and additional staff to provide what was previously being furnished to them by the McCarran-Ferguson Act. This cost will be passed onto the consumer and the smaller and specialty insurance companies will no longer be able to compete with the big boys. The consumer will be the loser.

JIM LEONARD

Anaheim