Which method do state insurance departments use to evaluate insurers?

State insurance departments evaluate insurers primarily through the method of holding rate hearings and reviewing rate filings. This process is essential for ensuring that insurance rates are adequate, not discriminatory, and reasonably reflect the cost of providing coverage. By examining rate filings, state regulators can assess whether the proposed rates comply with state laws and regulations, which helps maintain the financial health of insurers and protects consumers from unfair practices.

Rate hearings offer a platform for various stakeholders, including insurers, consumer advocates, and the public, to voice their concerns or support for proposed rate changes. This transparency and public involvement contribute to a more equitable regulatory environment and help build trust in the insurance market.

The other methods, while they may play roles in broader regulatory or market oversight, do not serve as direct evaluation tools for insurers in a regulatory sense. Political lobbying focuses on influencing legislation rather than evaluating insurer performance. Conducting international comparisons might provide insights for policy development but does not assess individual insurer practices within a state. Public relations campaigns, while important for branding and consumer outreach, do not contribute to the evaluation of an insurer's financial stability or compliance with regulatory standards.