What does company regulation pertain to?

Company regulation pertains to the oversight and regulations that ensure insurance companies operate in a fair, transparent, and financially sound manner. This includes important aspects such as licensing, which ensures that only qualified entities can sell insurance products, and solvency, which refers to the company's ability to meet its long-term financial obligations. Regulatory bodies establish standards for financial health, requiring companies to maintain sufficient reserves and surplus to protect policyholders' interests. By focusing on these elements, regulators help maintain the stability of the insurance market and protect consumers from potential failures of insurance companies. This is why licensing and solvency is the correct understanding of company regulation within the insurance industry.