Who regulates the insurance industry in most cases?

The regulation of the insurance industry is primarily the responsibility of state governments in the United States. Each state has its own insurance department, which oversees and enforces insurance laws and regulations within that state. This system allows for localized oversight that can address the unique needs and circumstances of each state's insurance market.

State regulation encompasses several functions, including the licensing of insurance companies and agents, the approval of insurance policies and rates, and the monitoring of insurance company solvency to protect consumers. This regulatory framework aims to ensure fair treatment of policyholders, maintain competition among insurers, and promote financial stability within the insurance sector.

While the federal government has some jurisdiction over specific areas of insurance, such as health insurance and certain aspects of financial services (for example, through legislation like the Affordable Care Act), the majority of insurance products, including property and casualty insurance, are regulated at the state level. Local governments typically do not have regulatory authority over the insurance industry, and international agencies do not play a role in U.S. insurance regulation.