At what level is the insurance industry primarily regulated?

The insurance industry is primarily regulated at the state level due to the historical context of insurance regulation in the United States. Each state has its own laws and regulations governing insurance companies, agents, and the policies they sell. This state-based approach allows for a tailored regulatory framework that can address the unique needs and circumstances of each state's insurance market.

State regulators focus on consumer protection, ensuring that insurance policies are fair and that companies maintain sufficient financial reserves to meet their obligations to policyholders. Additionally, state regulation promotes competition among insurers and provides a mechanism for resolving disputes between consumers and insurance providers.

While there are some federal laws that apply to specific aspects of insurance, such as the Health Insurance Portability and Accountability Act (HIPAA) or regulations concerning flood insurance, the vast majority of insurance regulation is conducted at the state level, making it the primary regulatory body in the industry. Local and international levels play lesser roles in the regulatory sphere of insurance.