What could indicate poor market conduct by an insurer?

Frequent customer complaints and litigation can serve as significant indicators of poor market conduct by an insurer. When a company faces numerous complaints from its clients, it suggests that there may be issues related to its service delivery, policy interpretations, claims processing, or overall customer satisfaction. High levels of litigation against the insurer imply that customers are not just dissatisfied but feel compelled to pursue legal action to resolve their grievances, which can reflect negatively on the insurer's reputation and operational practices.

In contrast, high customer retention rates indicate that clients are generally satisfied and willing to continue their business relationship with the insurer. Transparency in claims handling is a sign of good practice as it shows that the insurer is open and honest about the processes involved in managing and settling claims. Strong regulatory compliance further reflects that the insurer adheres to laws and standards governing its operations, which is generally associated with ethical market conduct. Therefore, in the context of assessing market conduct, frequent customer complaints and litigation clearly signify areas of concern.