IRDAI wants insurers to stop hiding prices behind personal data walls

India's Insurance Regulatory and Development Authority (IRDAI) has put forward proposals that would prohibit insurers from using "dark patterns" on their websites and platforms. The regulations specifically target practices that require consumers to submit personal information before accessing basic product and pricing details.

These proposals are part of a broader effort to increase transparency in insurance purchases and reduce reliance on intermediary-led sales. According to IRDAI's consultation paper, "Recalibrating Economics of Insurance Distribution – Part 1: Distribution Reforms," insurers would be required to provide product information, pricing, performance, and quality details without collecting personal data.

IRDAI defines dark patterns as any practices or user interface designs intended to mislead or trick users into unintended actions. This includes methods that undermine consumer autonomy, decision-making, or choice, amounting to misleading advertising or unfair trade practices.

The regulator also proposes standardized one-page information sheets and FAQs for different insurance classes. Furthermore, it suggests public disclosure of management expenses and commission information for insurers and distributors, aiming to facilitate easier comparison for consumers.