legal compliance in insurance

Legal compliance in insurance means that insurance companies operate according to laws and regulations set by government authorities. This includes properly managing policies, handling claims fairly, maintaining financial stability, and protecting customer rights. Compliance ensures transparency, honesty, and accountability, reducing the risk of misconduct or fraud. It also involves adhering to standards for marketing, data privacy, and reporting. Overall, legal compliance helps maintain trust, safeguards consumers, and ensures the insurance industry functions within a lawful framework.