Colorado legislators just passed a new law that, among other things, imposes stringent reporting requirements on the state's auto and health insurers. According to a post at InjuryBoard.com, some are calling the Fair Accountable Insurance Rates Act another Sarbanes-Oxley.
Writer Niki Skaggs says:
The Act requires each insurance carrier to file with the commissioner of insurance a detailed description of its rating and renewal practices, and such information to be public when filed. The Act also requires each insurance carrier to file annually with the commissioner the number of lives insured in the previous year, as well as requires requested rate filing increases for health and automobile insurance to be submitted to the commissioner of insurance at least 60 days prior to the proposed implementation date.
Similarly, on the other side of the equation, the insurance commissioner is required to track and make public each year the rate increases that were approved for implementation, those that were not, and the reasons given for each decision. Is all the reporting necessary? Will it do what legislators intend -- that is, provide accessible and affordable health and auto insurance for consumers?
The tone of Skaggs' piece suggests she doesn't think so. Only time will tell.