What does "consumer protection" focus on in insurance regulation?

Consumer protection in insurance regulation primarily focuses on safeguarding policyholders' rights and interests. This approach aims to ensure that consumers receive fair treatment in the insurance marketplace, which includes transparent communication of policy terms, fair claims handling, and the overall management of policies.

By focusing on protecting consumers, regulatory bodies look to prevent misleading practices and ensure that insurers operate in a manner that respects the rights and needs of their policyholders. This enhances consumer trust in the insurance system and encourages a more equitable market for individuals seeking insurance coverage.

Enhancing insurer profitability, regulating insurance sales commissions, and evaluating market competition are not central to the core purpose of consumer protection in insurance regulation. While those elements can influence the insurance market, they do not directly address the need to prioritize and defend the interests of the consumer, which is the key focus of consumer protection policies in this context.