What is the primary concern of regulators when examining insurers?

The primary concern of regulators when examining insurers is their solvency and ability to meet claims. This focus is crucial because the primary function of an insurance company is to provide financial protection to policyholders by paying out claims when necessary. If an insurer is not solvent, meaning it does not have sufficient assets to cover its liabilities, it poses a risk not only to the company itself but also to the policyholders and the overall insurance market.

Regulators mandate that insurers maintain certain capital and surplus levels, conduct regular financial examinations, and adhere to reserve requirements, all aimed at ensuring that companies can fulfill their obligations to claimants, even in adverse circumstances. This focus on financial stability helps maintain consumer confidence in the insurance industry and safeguards the interests of policyholders.

While aspects such as marketing strategies, employee satisfaction, and customer feedback are relevant to the overall success and operation of an insurance company, they do not carry the same weight in terms of regulatory scrutiny. The critical aspect for regulators is ensuring that insurers can sustain financial health to meet future claims, which is fundamental to the industry's integrity.