What is the primary purpose of market conduct examinations in insurance?

The primary purpose of market conduct examinations in insurance is to assess compliance with insurance laws and ensure fair treatment of consumers. These examinations are conducted by regulatory bodies to evaluate whether insurance companies are following established regulations that protect consumers from unfair practices. This includes examining marketing practices, claims handling, underwriting processes, and other aspects of how insurers interact with policyholders.

By focusing on compliance, market conduct examinations help to maintain trust in the insurance market and ensure that consumers are receiving the services they are entitled to under their policies in a fair and ethical manner. This not only protects consumers but also promotes responsible business practices within the industry.