What is typically the main focus of the insurance department's regulatory authority?

The primary focus of an insurance department's regulatory authority is ensuring insurer solvency. This means that the department is responsible for making certain that insurance companies have enough financial resources to meet their future policyholder obligations. Solvency regulation is crucial because it protects consumers from the risk of insurance companies going bankrupt and being unable to pay claims.

By monitoring financial health through requirements such as reserve requirements and risk-based capital standards, the regulatory authority helps maintain a stable insurance market. This focus on solvency also fosters public confidence in the insurance system, assuring policyholders that when they file a claim, the insurer will have the necessary funds to fulfill its commitments.

While promoting insurance products, valuing insurance policies, and issuing licenses are important aspects of the insurance department's functions, they serve as supportive roles to the primary goal of ensuring that insurers remain financially stable and capable of providing coverage.