What is the ultimate goal of market conduct regulation?

The ultimate goal of market conduct regulation is to ensure compliance with market activity laws. This regulation serves as a framework to oversee the actions of insurance companies and agents, ensuring they operate fairly and transparently in their dealings with consumers. By enforcing rules and standards for how insurers interact with customers, market conduct regulation seeks to protect consumers from unethical practices, such as misrepresentation and unfair claims handling.

This regulatory approach helps maintain a competitive marketplace where ethical behavior is standard, which ultimately benefits consumers through fair treatment and enhanced trust in the insurance industry. Compliance with market activity laws ensures that companies adhere to established norms, fostering an environment where consumers are aware of their rights and the obligations of insurers. This aligns the actions of market participants with the broader goal of consumer protection, financial stability, and market integrity.