Moreover, it says, caps on premiums can delay justifiable rate increases and "result in higher future rate increases or threaten insurer solvency".
Screw the cap on securely.
The law also raised the cap on annual premium increases for all properties, from 10percentto20percentcent.
In America, where insurance is regulated on a state-by-state basis, caps on insurance premiums have prompted firms to withdraw coverage in high-risk areas such as Florida.
The Clinton plan, they say, borrowed their rhetoric of market-based competition, but it added elements such as caps on insurance premiums, the alliances (which they consider too large and regulatory), and certain tax provisions (which, they argue, encourage neither employers nor employees to be sensitive to health-care costs).
The Treasury also announced that the cap on savings in Premium Bonds will be raised, for the first time in over a decade.
The cap on the amount of Premium Bonds a person can own will rise from £30,000 to £40,000 in June and £50,000 in 2015.
In 1993, Mr. Clinton pushed for putting a cap on the growth of insurance premiums -- an idea similar to having a national health budget, which conservative governments in other countries have done.
While other factors were at work the state imposed a $1 million cap on malpractice awards, for example–premiums for obstetricians have fallen much more than for other specialists.
