What is the primary purpose of insurance regulation in North Carolina?

The primary purpose of insurance regulation in North Carolina is to protect consumers and promote a competitive insurance market. This framework is designed to ensure that insurance companies operate fairly and transparently, providing necessary safeguards for policyholders. By promoting fair competition, regulations help to maintain a marketplace where multiple insurance providers can offer diverse products, allowing consumers to choose policies that best meet their needs while ensuring that they are treated fairly.

The focus on consumer protection includes enforcing standards that prevent discriminatory practices, ensuring that insurance products are financially sound, and maintaining ethical business practices. This regulatory environment fosters trust, allowing consumers to feel secure that their insurers will honor their claims and commitments.

This approach does not center around increasing profits for insurance companies, as that would not align with the consumer protection mandate. Additionally, while affordable insurance rates are important, the primary goal is broader—encompassing overall market stability and consumer confidence rather than just pricing. Limiting the number of insurance providers contradicts the goal of a competitive market, which thrives on having a variety of options available to consumers.