Which regulation requires insurers to maintain sufficient reserves to cover future claims?

The Insurance Company Act is the regulation that mandates insurers to maintain sufficient reserves to cover future claims. This requirement is fundamental to ensure that insurance companies remain solvent and can fulfill their obligations to policyholders. Adequate reserves are crucial for the financial health of an insurer because they provide a buffer against unexpected claims, ensuring that the company can meet its liabilities even in adverse situations.

In the context of insurance regulation, maintaining sufficient reserves helps protect consumers by ensuring that their claims will be paid when they are due. This is particularly important in the insurance industry, as policyholders rely on their insurers to provide financial support following losses.

The other regulations mentioned do not specifically focus on the requirement for insurers to maintain reserves. The Risk Management Act addresses broader principles of risk management within organizations, the Consumer Protection Act is primarily concerned with protecting consumer rights and interests, and the Financial Stability Act deals with the overall stability of the financial system rather than the individual requirements for insurance reserves.