Consultant eyes regulation.

Byline: Jeff Casale

With Congress debating the idea of creating a systemic risk regulator, a report by McKinsey & Co. says that may not be the best option for the U.S. economy or the property/casualty industry.

In its report, the New York-based consultant said that while a systemic risk regulator would improve safety and soundness by providing additional oversight of state regulators, it also could lead to confusion, lack of accountability and "costly duplication of effort,'' inefficiency for which customers would pay.

The report, "Improving Property and Casualty Insurance Regulation in the U.S.,'' says the U.S. property/casualty insurance industry …