What is the purpose of standards established by CDI for information practices in insurance?

The purpose of the standards established by the California Department of Insurance (CDI) for information practices in insurance is primarily to maintain fairness in insurance practices. These standards ensure that insurance companies operate transparently and equitably, promoting ethical behavior in how insurers handle information, interact with consumers, and process claims. By establishing guidelines that prioritize fairness, the CDI helps protect consumers from discriminatory practices and ensures a level playing field within the insurance market. This contributes to public trust in the insurance system as well as compliance with regulations designed to safeguard personal information and promote consumer rights.

While reducing processing times, increasing premiums, or simplifying claim processes are important aspects of insurance operations, they do not directly address the fundamental aim of ensuring fairness in how insurance businesses engage with consumers and each other.