IRDAI Moves to Curb Online Insurance Dark Patterns

The Insurance Regulatory and Development Authority of India (IRDAI) has proposed wide ranging reforms to make insurance distribution more transparent and customer friendly. In a discussion paper released on Wednesday, the regulator proposed curbing deceptive website practices known as “dark patterns”. These include requiring customers to share personal information before they can view policy features, prices or premium details. If implemented, the proposal would allow customers to access such information without first providing their personal details.

The proposed framework also seeks to bring greater clarity to insurance distribution, including its costs, commissions and marketing practices. IRDAI has suggested classifying distribution channels into three categories: Insurance Distribution Entities (IDEs), Insurance Distribution Persons (IDPs) and Market Infrastructure Institutions (MIIs). The discussion paper also covers commission structures, disclosure requirements and measures to strengthen customer protection and address mis-selling.