What does "market conduct" refer to in insurance regulation?

Market conduct in insurance regulation refers to the behaviors and practices of insurers as they interact with consumers and other market participants. This encompasses a wide range of activities, including how insurers advertise their products, the clarity and fairness of policy terms, the handling of claims, and overall treatment of policyholders. Regulators closely monitor market conduct to ensure that insurers operate ethically and maintain a fair marketplace, protecting consumers from deceptive or unfair practices.

This concept is crucial in promoting trust and confidence in the insurance market. By focusing on market conduct, regulators aim to ensure that all market players adhere to certain standards, fostering a competitive environment that benefits consumers while discouraging practices that could lead to market abuses or exploitation. The emphasis on insurer behaviors helps safeguard consumer interests, ensuring that individuals receive appropriate coverage and fair treatment throughout their interactions with insurers.