Getting an insurance quote online? Watch out for these 6 dark patterns

As per the latest business developments, Getting an insurance quote online may look simple. You just need to enter a few details, compare premiums and choose a policy. But consumers can encounter design tactics that influence what they share, click or ultimately buy. These are known as dark patterns, and the offering has now caught the attention of the insurance regulator.

In its consultation paper on "Recalibrating Economics of Insurance Distribution", IRDAI has proposed prohibiting such practices. It has proposed that insurers disclose product, pricing and quality information in a standard, easy-to-understand format without first seeking personal details from consumers.

Hanut Mehta, CEO, BimaPay, stated, "These reforms will separate insurtech models built on commissions from those built on customer value. The proposed market infrastructure institutions, with Bima Sugam as one of them, together with standardised product information and a ban on dark patterns, shift the market from sellers pushing policies to customers choosing them on neutral platforms. That is a fundamental change in how insurance will be bought online."

Here are six dark patterns consumers should watch out for:

A consumer may be asked for a name, mobile number, or consent to be contacted before being allowed to see a quote. In a LocalCircles survey of more than 87,000 consumers across 341 districts, 85 percent of respondents who used online insurance platforms stated they had experienced forced action.

Repeated calls, messages, pop-ups or prompts can propel consumers to continue with a purchase even when they are only comparing policies. LocalCircles stated 90 percent of surveyed users experienced nagging.

An attractive premium may get a consumer's attention, but the actual policy or renewal price could be different. Nealy 82 percent of respondents surveyed by LocalCircles stated they experienced this pattern.

Consumers may find it difficult to cancel or de-link a service once they have signed up. The survey found 80 percent had experienced subscription traps

This involves collecting more personal information than appears necessary. The survey stated 77 percent of surveyed users frequently experienced this, with concerns around subsequent use of data for messages, differential pricing or other purposes.

The initial price may not reveal all charges, with additional costs disclosed later in the purchase journey. 65 percent of surveyed users noted experiencing drip pricing, according to LocalCircles.

What policy buyers must understand?

When you visit any insurer's website online, don't judge an insurance policy only by the first premium displayed on screen. Check what information is being collected, whether the quoted price includes all charges, what you are consenting to and whether optional services are actually optional.

IRDAI has invited comments on its proposal until October 25, potentially marking a significant shift towards making online insurance buying more transparent.