There is a possibility that the customers may soon find it easier to check the prices of insurance policies online. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed that insurers and insurance distributors provide information about product features, pricing and quality without requiring customers to submit their personal information first.
The insurance regulator introduced this proposal in its recent consultation paper titled “Recalibrating Economics of Insurance Distribution.” This paper aims to make insurance distribution more transparent and focused on customer needs. It is important to note that, currently, this is just a proposal. There is no finalization of this proposal as of now.
In the consultation paper released by the IRDAI, one of the most consumer-centric proposals is related to how insurance websites display information. The regulator stated that customers should be able to access product features, pricing and quality information in a standard and easy-to-understand format without having to enter their personal details. This means that under the proposed framework, any individual looking for health, life or other insurance products would not need to enter information such as their mobile number or other personal details just to find out the available policy options and their prices.
The regulator has specifically criticized the current practice of requiring customers to provide personal information before granting access to product features and pricing. The regulator said that this is one of the ‘dark patterns’ commonly seen on websites of most insurers and distributors. It also goes against guidelines issued by the Central Consumer Protection Authority under the Consumer Protection Act of 2019.
Dark patterns are designs found on websites or apps that aim to influence, mislead or trick users into taking actions they might not have otherwise chosen. The consultation paper highlights that requiring customers to provide personal information before they can view product features and pricing is a practice commonly seen on the websites of insurers and distributors.
The insurance regulator has proposed banning such practices under insurance regulations. For consumers, this change would make it easier to understand the cost of an insurance policy before needing to share their contact details with an insurer or insurance platform.
Many customers share their personal details for insurance products and later on after discovering the price or other details of such products, they realise they are not suitable for them. If they knew about details upfront, it is likely that many of them would have avoided sharing their contact details.
In the present scenario, many consumers searching for insurance online happen to come across online forms. These forms ask for their details before they can continue with their enquiry. For those who are simply comparing policies, premiums, or features, this means sharing contact information even before deciding if they are interested in a specific product.
The proposed framework aims to separate these two steps: first, allowing consumers to access basic information about products and pricing and then collecting personal information only when it is necessary for the next stage of the insurance-buying process. This approach could make it easier for consumers to compare products from different insurers without immediately entering a sales or lead-generation process.
As noted earlier in this news article, the proposal has not yet become a final regulation. It forms a part of the recently notified IRDAI consultation paper. Currently, the regulator is inviting comments from stakeholders until October 25.
Consequently, the final rules may differ from the current proposals under consideration. The proposal concerning dark patterns is just one of the many key aspects of the broader consultation.
News: MSN
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