Insurance, at least most kinds of insurance, is deeply crony. Insurance commissioners and insurance companies in each state work closely together to “protect” insurance consumers, and more importantly to “protect” established companies. It is a racket at least as far as I can see, and in another life I used to look at insurance filings for individual property and casualty insurance companies in my home commonwealth of Virginia. Insurance is deeply regulated and this deep regulation means a partnership with bureaucrats. Which is just fine by most insurance companies, at least the companies that have friends in the statehouses.
(From Tech Crunch)
Washington State Insurance Commissioner Mike Kreidler has ordered insurance startup Zenefits to stop providing free use of its software in the state. The Commissioner issued a release detailing the order on Thursday, and explaining that the block on a completely free product is a result of Zenefits violating the state’s inducement laws, which prevent any one provider from acts that significantly undermine the competitiveness of the rest with extreme incentives.
“The inducement law in Washington is clear,” Commissioner Kreidler said in a statement accompanying the order. “Everyone has to play by the same rules.”
As a result of the order, Zenefits has worked out a compromise with the State whereby it will offer its software on a paid basis, at a rate of $5 per employee per month.