Which type of government is primarily concerned with regulating insurance?

The type of government primarily concerned with regulating insurance is the state government. Insurance regulation is typically managed at the state level due to the recognition of states’ rights to regulate commerce within their borders and the historical context of insurance as a local concern. Each state has its own insurance department or commission responsible for overseeing the insurance industry, including licensing insurance companies, approving policy forms, setting rates, and ensuring that companies comply with state laws and regulations designed to protect consumers.

State regulation allows for a tailored approach to the unique needs and conditions of each state’s insurance market. This decentralized system is also evident because different states may have different laws and requirements governing insurance practices, which can reflect the specific circumstances and priorities of their populations. In contrast, the federal government does have some oversight over certain aspects of insurance, particularly in areas like health insurance and national policies, but overall regulation and oversight remain predominantly a function of state governments.