insurance regulatory framework

The insurance regulatory framework is the set of laws and agencies that oversee insurance companies to ensure they operate fairly, financially sound, and with consumer protection in mind. Regulators set rules for licensing, solvency, and claim handling, and monitor companies’ conduct to prevent fraud and misuse. They also promote transparency and stability in the insurance market, safeguarding policyholders’ interests. This framework varies by country and region but generally aims to foster trust and stability in the insurance industry while allowing it to serve its purpose of managing risk.