The insured pays their consideration at the very beginning of the contract (payment of the premium), but before the insurer is called to perform their part, time may have changed their security profile. In view of the economic importance of insurance, this has led governmental authorities to enact regulations that should guarantee the long-term viability of insurers. It is of interest to note that the first regulations governing insurance were enacted primarily to protect insurers against fraudulent action on the part of the insured (over insurance, multiple insurance, etc.).
It was only at the turn of the twentieth century, especially with the appearance in some countries of compulsory insurances (motor, liability, workmen's compensation), and because of the increasing level of complexity of insurance contracts, that legislators started to concern themselves to an increasing extent with protecting the interests of the insurance consumer (policy-holder and third parties). This trend has accelerated after the Second World War with the advent of "consumerism". Today the protection of the public and its fair treatment is cited as a major concern of most new insurance-related regulations. In a number of countries consumer protection has expanded the activities of the legislator beyond concern with reliability to include other considerations such as the availability, affordability and quality of insurance services. The General Agreement on Trade in Services (GATS), recently concluded within the framework of the Uruguay Round negotiations, recognizes specifically that in regard to financial services member countries "shall not be prevented from taking measures for prudential reasons, including for the protection of policy-holders... or to ensure the integrity and stability the financial system".