Insurance commissioners in most cases over the years are little more than a lobbyist for the insurance industry. They often come out of the industry, spend a few years in the state capital polishing up their resume, and then go back to work for the industry. While serving as insurance commissioner, they usually serve their past and future employers and benefactors, not the public or the policyholder. The insurance commissioner regulates the insurance industry, to make sure both the public and policyholders are treated fairly. Translated that means we have regulation of, by, and for the industry.
Legislators write and enact the insurance laws.
Then the proposals are made under the name of a legislator and go through the legislative process toward enactment, often without any public scrutiny. Legislators exercise independent judgment in voting on insurance bills and other matters and are part of a democratic decision process. The legislators pass judgment on insurance matters freed of any substantial conflict of interest. Published reports amply document that the legislature is sinking in conflict of interest. Last year, published reports indicated that about half of the political contributions of the chairman of the house and senate insurance committees in Pennsylvania came from the industry.