Insurance Regulation
What Does Insurance Regulation Mean?
Insurance regulation involves government oversight of the insurance market to promote fairness and professionalism among industry professionals, prevent market instability, and ensure broader access to insurance. Laws are established for the industry, and a regulatory agency is set up to enforce these laws.
Insuranceopedia Explains Insurance Regulation
In the United States, state governments regulate insurance companies, issuing licenses for companies to operate and for individuals to work professionally within the insurance sector. State agencies also resolve disputes and grievances from both insured individuals and insurers based on state insurance laws. However, the federal government has occasionally intervened, passing laws and establishing minimum standards that all insurance companies must follow, regardless of their state. This federal oversight has been driven by past instances of bankruptcies that states were unable to prevent.
