What role do insurance regulators typically play?

Insurance regulators are primarily responsible for monitoring the financial health of insurance companies to ensure that they can fulfill their obligations to policyholders. This oversight involves reviewing insurers' financial statements, conducting regular examinations, and ensuring that they maintain sufficient reserves to pay claims. By closely monitoring their financial stability, regulators help protect consumers and maintain confidence in the insurance market.

The other roles listed, such as marketing insurance products, setting premiums, or providing legal advice, do not typically fall under the purview of insurance regulators. Instead, insurers themselves take on marketing and premium-setting as part of their business operations. While legal advice is often sought by insurance companies, it is usually provided by their in-house legal teams or external counsel rather than regulators. The focus of regulators remains firmly on ensuring that insurance companies operate fairly, remain solvent, and adhere to the laws and regulations that govern the industry.