The Regulatory Challenges In National Commercial Insurance Industry

One of the most important sector of every economy, is its financial one. Banking and Insurance industry are two main elements of this sector. However, developing Insurance industry and increasing its penetration is subject to many challenges that need to be addressed. Some of these issues are endogenous ones that origin from insurance industry itself. In this paper, we have tried to fully address the most important category of these endogenous challenges, i.e. regulation challenges. For this porpose, we have first listed the insurance challenges in regulation. Then we have addressed the issue from a macro view and based on the origin of the challenges; i.e. whether or not they come from any of three major power recognized by the constitution. Furthermore, we have analyzed the issues in the costomer side as well as the cultural norms. Last, we have proposed some policy suggestion in order to move from current equilibrium toward the optimum one. Throughout the paper, we have tried to discuss the concept from an Economic point of view, beside the main legal point that we have utilized.