What primary role is associated with financial surveillance in insurance regulation?

The primary role associated with financial surveillance in insurance regulation is to classify and identify troubled companies. Financial surveillance involves monitoring the financial health of insurance companies to ensure they are solvent and able to meet their obligations to policyholders. Regulators analyze financial statements, ratios, and other indicators to assess the stability of insurers.

Identifying troubled companies is crucial for maintaining the overall integrity of the insurance market and protecting consumers. When regulators can spot potential issues early, they can engage in corrective actions or interventions before a company faces significant financial distress or insolvency. Such proactive measures help to stabilize the insurance market and ensure that policyholder interests are safeguarded.

In contrast, collecting and analyzing non-financial data, reviewing policy forms for compliance, and licensing agents and brokers represent other essential functions of insurance regulation, but they do not specifically pertain to the financial aspects and the identification of financially troubled entities within the industry.