Actuarial Notes

Government Provision of General Insurance

By Anthony Cappelletti · Society of Actuaries · 2025

Study guide: Exam GI-201

A Society of Actuaries study note, revised May 2025, on government involvement in the business of insurance. It names two key functions, regulation of the private insurance industry and the provision of insurance programs, and goes on to the reasons for government provision and to programs by line of business and country: agricultural, automobile, property, workers compensation, other general insurance lines, health insurance and residual markets.

On the syllabus

  • Exam GI-201 — outcome 2e; sections 1-3, 5, 6 and 9; outcome 3e; section 10, Appendix – No-Fault Insurance

1 Introduction

2 Reasons for the Government Provision of Insurance

  • 2.1 Social Insurance
  • 2.2 Evaluation of Government Insurance Programs

3 Agricultural Insurance

  • 3.1 United States - Agriculture
  • 3.2 Canada - Agriculture
  • 3.3 Australia - Agriculture
  • 3.4 China - Agriculture
  • 3.5 France - Agriculture

4 Automobile Insurance

  • 4.1 United States - Automobile
  • 4.3 Canada - Automobile
    • 4.3.1 Canada – Automobile – Private Sector Tort: Alberta, the Territories and the Atlantic Provinces
    • 4.3.2 Canada – Automobile – Government Run Tort: British Columbia
    • 4.3.3 Canada – Automobile – Government Run No-Fault: Manitoba, Saskatchewan, and Quebec
    • 4.3.4 Canada – Automobile – Private Sector No-Fault: Ontario
  • 4.4 Australia - Automobile
    • 4.4.1 Australia – Automobile – Private Sector CTP: Australian Capital Territory, New South Wales, Queensland and, South Australia
    • 4.4.2 Australia – Automobile – Government CTP: Northern Territory, Tasmania, Victoria and Western Australia
  • 4.5 China - Automobile
  • 4.6 Germany - Automobile

5 Property Insurance

  • 5.1 United States - Property
    • 5.1.1 U.S. – Property: Flood
    • 5.1.2 U.S. – Property: Earthquake
    • 5.1.3 U.S. – Property: Hurricane/Windstorm
    • 5.1.4 U.S. – Property: Terrorism
    • 5.1.5 U.S. – Property: Other
  • 5.2 Canada - Property
    • 5.2.1 Canada – Property: Flood
    • 5.2.2 Canada – Property: Other Natural Catastrophes
    • 5.2.3 Canada – Property: Terrorism
  • 5.3 China - Property
    • 5.3.1 China – Property: Natural Catastrophes
    • 5.3.2 China – Property: Terrorism
  • 5.4 France - Property
    • 5.4.1 France – Property: Natural Catastrophes
    • 5.4.2 France – Property: Terrorism
  • 5.5 Japan - Property
    • 5.5.1 Japan – Property: Earthquake
    • 5.5.2 Japan – Property: Other Natural Catastrophes
    • 5.5.3 Japan – Property: Terrorism

6 Workers Compensation

  • 6.1 United States – Workers Compensation
  • 6.2 Canada – Workers Compensation
  • 6.3 China – Workers Compensation
  • 6.4 Germany – Workers Compensation
  • 6.5 Japan – Workers Compensation

7 Other General Insurance Lines of Business

  • 7.1 Financial Products
    • 7.1.1 Financial Products – Deposits
    • 7.1.2 Financial Products – Mortgages
  • 7.2 Unemployment Insurance

8 Health Insurance

  • 8.1 Government Provision of Health Insurance
  • 8.2 Government Provision of Health Insurance and its Effect on General Insurance
  • 8.3 The ACA and its Effect on General Insurance in the U.S.

9 Residual Markets

  • 9.1 Types of Residual Market Programs
  • 9.2 Residual Market Programs in the U.S. and Canada
  • 9.3 Regulation and Residual Markets
    • 9.3.1 Market Competition
    • 9.3.2 Market Rates
    • 9.3.3 Non-Monetary Barriers to Entry
    • 9.3.4 Regulatory Framework for Residual Markets

10 Appendix – No-Fault Insurance

11 References

12 Endnotes

Sources