What principle does market conduct primarily affect?

Market conduct primarily affects customer satisfaction and trust, as it encompasses the behavior of insurance companies in their dealings with policyholders, regulators, and the general public. Good market conduct involves treating customers fairly, providing transparent information, and honoring policy terms, all of which are fundamental in establishing a positive relationship between insurers and their clients.

When insurers are perceived as acting ethically and responsibly, it fosters trust among consumers, leading to a better customer experience. This trust is crucial, as it influences customers' decisions to purchase insurance, remain with their insurer, and recommend their services to others. In essence, market conduct directly impacts how satisfied customers feel with their insurers and their confidence in the insurance industry as a whole.

In contrast, while financial regulations, insurance premiums, and investment strategies are important aspects of the insurance landscape, they do not directly encapsulate the ethical and relational dynamics that market conduct primarily addresses.