How do regulators generally hope to prevent insurer insolvencies?

Regulators aim to prevent insurer insolvencies primarily by requiring periodic financial reporting from insurance companies. This ongoing monitoring allows regulators to assess the financial health and stability of insurers over time. By analyzing financial statements and reports, regulators can identify potential red flags, such as declining reserves, increasing liabilities, or mismanagement of assets. This proactive approach helps ensure that insurers remain solvent and can meet their obligations to policyholders, protecting both consumers and the overall stability of the insurance market.

The other options do not directly address the core responsibility of regulators to monitor financial stability. Minimizing financial liability and limiting the number of policies issued may have indirect effects but do not provide the continuous oversight that financial reporting does. Similarly, increasing marketing strategies does not contribute to the financial health of an insurer or the protection of policyholders. Such strategies may actually lead to riskier behavior if an insurer takes on too much business without adequate capital or reserves. Therefore, regular financial reporting is essential for regulators to take the necessary measures to prevent insolvencies effectively.