and cartoon this week to illustrate their view that deregulation of rates, forms and market restrictions in the US for large commercial buyers of insurance is overdue.

The National Association of Insurance Commissioners (NAIC) have spent some two years studying the issue and BI said they will probably spend another three months before completing a draft paper, which will lead to months of debate before it is approved or rejected.

BI stated: "Over the past decade, large sophisticated buyers of commercial insurance have left the traditional market -- and therefore the constraints of state regulation -- in droves, opting for self insurance and a variety of alternative risk financing vehicles.

"They are also buying billions of dollars of insurance in Bermuda, where insurers are free to underwrite what the customer wants without first filing rates and forms with multiple regulators.'' The article stated how the system of individual state regulation, which is supposed to protect consumers, in reality restrains US insurers from competing with some non-US companies, alternative facilities and other options.

BI said: "It saddles them with billions of dollars of costs to comply with 50 sets of paperwork and hampers their ability to develop innovative and flexible coverage solutions for their policyholders.

"While this is not news to our readers we wonder why it has taken the NAIC so long to recognise and act on this.'' MAGAZINE NJ LAMPOONED -- Bermuda is featured prominently in this magazine cartoon.