Insurance is a means of predicting future risks and protecting against future financial losses, and it is of great significance in the modern society. Benefitting the society and the economy, insurance protects consumer and business transactions, and it provides recovery from catastrophes (Marquit). It is estimated that the total net premiums written in the United States was 1.2 trillion dollars in 2015 (“Industry Overview”), which could be invested in various areas, such as bonds and stocks, to generate profits and make contributions to the economy (Marquit). The overall insurance industry has experienced constant changes and developments of various formats; this paper would mainly examine the government’s regulations of the insurance industry after the financial crisis of 2007-2009 as well as the improvements that insurance companies have achieved.As financial intermediations, insurance companies receive funds from customers and then make investment. Figure 1 below shows that insurance companies comprise around 14.6% market share of financial intermediary assets in 2000 (“What Is the Economic Function of a Bank?” ), indicating the great importance of insurance companies in the market as they play an essential role in the financial market with their crucial functions. What’s more, insurance companies also share the five functions of financial intermediaries, which are “pooling savings, safekeeping and accounting, providing liquidity, diversifying risk, and collecting and processing information services”. According to Cecchetti and Schoenholtz, these functions help insurance companies to lower transaction costs, operate smoothly, and then provide specialized services to customers.