What is the main objective of a 'market conduct' examination in insurance regulation?

The primary objective of a 'market conduct' examination in insurance regulation is to examine an insurance company's business practices. This type of examination focuses on how insurers interact with their customers, including the fairness, transparency, and compliance of their marketing, underwriting, and claims handling practices. Regulators conduct these examinations to ensure that insurance companies are treating policyholders fairly and are adhering to the rules and regulations set forth to protect consumers.

By concentrating on business practices, market conduct examinations help to identify any unfair, deceptive, or abusive practices that could harm consumers, ensuring that the insurance marketplace operates fairly and effectively. This focus on the operational aspects of insurance firms is distinct from other examinations that might focus on financial stability or the assessment of policy risks.