New Delhi: Insurance Regulatory and Development Authority of India (IRDAI) Chairman Ajay Seth on Saturday called for the complete removal of dark patterns from the insurance sector, saying transparent digital practices are essential to building consumer confidence and expanding insurance penetration in the country.
Speaking at an event here, Seth said insurers should critically examine their digital platforms and customer journeys instead of treating compliance as a mere procedural exercise.
He said consumers must be able to compare insurance products and pricing without being compelled to disclose personal information at the outset.
According to Seth, many insurance websites continue to seek details such as names, mobile numbers and consent to receive marketing calls even before displaying product prices, a practice that undermines transparency and customer convenience.
He also stressed that informed consent should go beyond legal compliance and become a key element of customer engagement.
“Trust is built when customers clearly understand what they are agreeing to,” Seth said. He added that the industry must focus on making the insurance buying process simpler and more transparent.
The regulator has intensified its focus on deceptive online practices this year by partnering with the Institute of Public Auditors of India to monitor dark patterns in the insurance sector.
It had also directed insurers to review their digital platforms in line with the Central Consumer Protection Authority’s guidelines and submit self-assessment reports.
Meanwhile, industry representatives said companies have begun reviewing their digital interfaces following the regulator’s advisory.
Earlier in June, Seth announced that the insurance regulator will soon issue fresh guidelines for banks to stop miss-selling of insurance products.
He stated that the ‘Bima Sugam’ platform is likely to be launched by September this year covering motor, health and term insurance. The website will kickstart with motor insurance, then move on to health and eventually term-life products, according to him.
(IANS)
