What is the main objective of rate filings and regulations in insurance?

The main objective of rate filings and regulations in insurance is to ensure that insurance rates are fair and non-discriminatory. This regulatory framework is designed to protect consumers by establishing standards that prevent insurers from charging excessively high premiums or discriminating against certain groups of policyholders based on criteria that are not relevant to the risk they present.

By requiring insurers to justify their rate-setting processes and decisions, regulators can help maintain a balance between the financial stability of insurance companies and the affordability of coverage for policyholders. This oversight fosters a competitive market where rates are reflective of the actual risks associated with insuring individuals and businesses, promoting equitable access to insurance products.

In contrast, generating profit for insurers is a natural business goal but is not the overarching aim of rate regulations, and creating uniformity across all insurance companies does not necessarily ensure fair treatment of consumers. Moreover, reducing the need for employer-sponsored insurance is not a goal of rate regulations and does not relate directly to the objectives of ensuring fairness in premium pricing.