Allowing the market to operate as independently as possible is a key factor of a well functioning capitalist economy. Part of this would include allowing insurers to set their own prices, and for the competition to drive prices down and quality up. Consumers generally benefit from this type of arrangement.

However, there is something to be said for regulation as well. Even though competition can be quite successful at keeping firms honest and consumer-driven, sometimes regulation is needed to solve market failures that may arise. For instance, in the insurance industry creating some regulatory guarantees of coverage would be important to provide another layer of protection for consumers.