What is required for carriers to ensure compliance with market activities?

The requirement for carriers to ensure compliance with market activities revolves around the necessity to adhere to laws and regulations. This is fundamental because the insurance industry is highly regulated to protect consumers, maintain fair competition, and ensure the stability of the insurance market. Compliance means that carriers must follow specific guidelines set by regulatory authorities, which include, but are not limited to, licensure, pricing, claims handling, and advertising practices.

Adhering to these laws and regulations ensures that insurance products are offered fairly and transparently, promoting consumer confidence and market integrity. While engaging in aggressive marketing practices or submitting performance reviews might be relevant management practices, they do not directly relate to the overarching compliance requirement that protects both the company and its customers. Similarly, increasing investment portfolios pertains more to financial growth strategies than to market compliance. Thus, the emphasis on following the established laws and regulations is crucial for maintaining ethical standards within the insurance industry.