What does the term "market conduct" refer to in insurance?

The term "market conduct" in insurance primarily refers to the regulatory compliance of insurers’ practices. It encompasses the behaviors and actions of insurers in the marketplace, focusing on how they treat policyholders, the fairness of their sales practices, and adherence to laws and regulations governing the insurance industry. This includes ensuring that insurers engage in ethical practices, communicate transparently with customers, and handle claims and complaints appropriately. By prioritizing market conduct, regulators aim to protect consumers and maintain trust within the insurance market, ensuring that companies act responsibly and in accordance with established standards.

In contrast, marketing strategies pertain to how insurers promote their products rather than their interactions with customers or regulatory compliance. Underwriting processes focus specifically on the evaluation and selection of risk to determine policy offerings and pricing, while financial performance deals with the profitability and stability of insurance companies, which do not directly address the ethical and regulatory dimensions encompassed by market conduct.