IRDAI Orders A Nine-Month Audit Of Insurance Dark Patterns

MediaNama reported that India's insurance regulator has commissioned the Institute of Public Auditors of India to define and track dark patterns used by insurers over the next nine months, escalating a compliance push that began in April.

The Insurance Regulatory and Development Authority of India had already told insurers to follow Central Consumer Protection Authority dark-pattern guidelines, conduct self-assessments within 15 days and submit action plans where they found gaps.

IRDAI Chairman Ajay Seth also flagged quote journeys that require customers to provide personal information before they can see policy pricing.

He described that kind of product discovery as a dark pattern when customers cannot compare options without first sharing a mobile number or other data.

Survey Figures Show Data Collection And Cancellation Complaints

The report cited a LocalCircles survey of more than 87,000 insurance customers across 341 districts.

It said 85% of respondents reported excessive personal-data collection by insurers, up from 57% over the previous 24 months.

The same survey said 80% of respondents reported difficulty cancelling policies, compared with 61% earlier.

It also said 90% faced persistent calls, SMS messages or emails, including after cancellation attempts, while 82% found gaps between advertised and actual pricing or terms.

IRDAI's April directive required insurers to check their own customer journeys against the CCPA's guidelines and file action plans when they found compliance gaps.

The new audit adds an outside measurement layer because the regulator said some insurers had already claimed they did not use dark patterns.

The disclosed evidence keeps the focus on interface design, data requests and cancellation journeys, not just written policy terms.

Insurers Still Lack Final Audit Standards

Seth said some insurers had told the regulator that they had no dark patterns after conducting self-assessments.

He said the new study would establish parameters for assessing how to measure the issue.

IRDAI did not name the insurers under review, specify penalties, publish the final audit definitions or say how the nine-month study will change enforcement after it is completed.