What is one of the major purposes of insurance regulation?

A major purpose of insurance regulation is to enhance consumer protection. This involves establishing safeguards to ensure that insurance companies operate fairly and transparently, providing consumers with reliable products. Regulations are designed to ensure that insurance policies are written in clear language, allowing consumers to understand their rights and obligations. Additionally, regulatory bodies monitor the solvency of insurance companies to protect policyholders from potential company failures, helping to ensure that claims will be paid when due.

Consumer protection measures may also include requirements for fair marketing practices, licensing of agents, and prohibitions against discriminatory practices in underwriting. By focusing on the consumer's interests, regulation helps maintain public confidence in the insurance system and promotes a stable insurance market.