How do market conduct practices affect policyholders?

Market conduct practices significantly shape the experiences of customer interactions. These practices encompass the behaviors and actions of insurers in their dealings with policyholders, including how they communicate policy terms, handle claims, and provide customer service. When market conduct practices are strong and ethical, policyholders benefit from fair treatment, clear information, and responsive service. Conversely, if these practices are lax or unethical, policyholders may experience frustration due to poor communication, lengthy claims processes, or inadequate support.

The impact of market conduct on policyholder experiences is crucial, as a positive or negative interaction can affect customer satisfaction, trust, and loyalty toward the insurance provider. This directly influences not only retention rates but also the overall perception of the insurance industry as a whole. Enhancing market conduct practices leads to a more transparent and trustworthy insurance environment for policyholders.