Why large states have more regulatory scrutiny for insurers

Some state insurance regulators are tougher than others. The extent of how strict they are depends on their staffing levels, which can be measured in three different ways.

This series will show three metrics: staff levels compared to the number of insurers in the regulator's state, staff levels compared to the amount of premiums insurers collect in the state, and regulators' budgets compared to premiums collected.

These metrics are based on data from the National Association of Insurance Commissioners, organized by the Revolving Door Project. The information on regulators is from fiscal year 2024, and the annual premium volumes are from 2022.

Depending on the measurement, larger states (in terms of population, geography or both) only sometimes have the resources for stricter regulation.

In this first part of the series, comparing regulatory personnel to the number of insurance companies shows that large states have resources for stronger oversight, with California, Texas, New York and Florida topping the ranking. California's regulator has been especially active, weighing in on solvency requirements for insurers, catastrophe modeling, contesting State Farm rate increases and more. Florida's regulator has been working to lower rates and move policyholders off the state's insurer of last resort.