Insurance Regulatory and Development Authority of India (IRDAI) Chairman Ajay Seth emphasized the importance of eliminating dark patterns from the insurance industry to enhance consumer trust and boost insurance reach in the country. Seth, speaking at an event, urged insurers to revamp their digital platforms and customer experiences, moving away from mere compliance towards transparency. He highlighted the need for consumers to compare insurance offerings and prices without being obligated to reveal personal details upfront.
Seth criticized the prevalent practice on many insurance websites that demand personal information like names and mobile numbers before displaying product prices, undermining transparency and customer convenience. He stressed the significance of informed consent as a vital aspect of customer interaction, beyond just meeting legal requirements. According to Seth, customer trust is fostered when individuals fully comprehend the terms they are agreeing to, advocating for a simpler and more transparent insurance purchasing process.
The regulatory body has intensified its scrutiny of deceptive online tactics this year, collaborating with the Institute of Public Auditors of India to monitor dark patterns in the insurance domain. IRDAI has instructed insurers to align their digital platforms with guidelines from the Central Consumer Protection Authority and furnish self-assessment reports. Industry representatives have confirmed that companies are already reassessing their digital interfaces in response to the regulator’s recommendations.
In a recent development, Seth disclosed plans for the issuance of new guidelines to prevent insurance mis-selling by banks. He revealed that the ‘Bima Sugam’ platform is slated for a September launch this year, covering motor, health, and term insurance products sequentially. The platform will commence with motor insurance, subsequently expanding to health and term-life offerings.
