What are market conduct examinations primarily focused on?

Market conduct examinations are primarily focused on on-site examinations of insurers' practices. This means they evaluate how an insurance company operates in the marketplace, including its marketing strategies, underwriting practices, claims handling, and overall consumer interaction. The intent is to ensure that the company is treating policyholders fairly and adhering to regulations that govern ethical business practices.

These examinations investigate whether insurers comply with statutory and regulatory guidelines, which includes assessing if they provide clear and accurate information to consumers, handle claims in a timely and fair manner, and maintain appropriate business conduct. By focusing directly on these practices, regulators can identify potential issues that may affect consumers and the integrity of the insurance market as a whole.

In contrast, financial audits focus specifically on the financial health and solvency of an insurance company, assessing things like reserves and overall financial statements rather than operational conduct. Customer satisfaction surveys may provide insight into consumers' experiences but do not typically constitute market conduct examinations. Lastly, while regulatory reviews of claims handling are important, they are a subset of the broader market conduct examination, which encompasses a wider range of operational practices.