The Right Insurance Rules

With number of stringent regulations already in place for insurance companies .. I am just wondering how blunders like AIG could have happend. Do we have to make to those regulations more rigorous or bring in the "right" rules ?

Here is an article from Ted Mathas that discuss about - "The Right Insurance Rules".

The writer is president and chief executive of New York Life Insurance Co., the largest mutual life insurance company in the United States.