What does market conduct refer to in insurance regulation?

Market conduct in insurance regulation specifically relates to the practices and behaviors of insurance companies in their dealings with policyholders and the general public. This encompasses a broad range of interactions, including how policies are sold, how claims are handled, and the overall treatment of customers. Regulators scrutinize market conduct to ensure that insurance companies are acting fairly, transparently, and in compliance with laws designed to protect consumers. This includes monitoring sales tactics, claims processing, and communication practices, all aiming to enhance consumer protection and trust in the insurance system.

While policies governing market competition and strategies for advertising are important in the broader context of insurance regulation, they do not focus specifically on how insurers interact with their clients, which is the essence of market conduct. Understanding market conduct helps ensure that consumers are provided fair treatment and that the market operates efficiently and ethically.