IRDAI Chief Urges Insurers to Eliminate Dark Patterns From Websites, Apps

The Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), Ajay Seth, has issued a clear warning to insurance companies, directing them to immediately remove deceptive “dark patterns” from their websites and mobile applications. Speaking at an event in New Delhi, he emphasized that complete transparency is paramount for preserving customer trust across the insurance sector.

Ending Forced Data Collection for Price Quotes
Seth highlighted that requiring consumers to input personal information—such as their name, mobile number, and communication consent—simply to view insurance product prices is an improper practice. He stated that digital platforms must be structured so that product details and premium costs are directly visible when a user visits the site.

The regulator made it clear that collecting unnecessary personal information to influence or manipulate consumer purchasing decisions directly constitutes a “dark pattern.” Furthermore, he stressed that digital consent should not be treated as a mere legal formality; rather, platforms must ensure users make decisions only after fully understanding the underlying policy terms and conditions.

Widespread Prevalence of Dark Patterns
The urgency of IRDAI’s warning is highlighted by recent findings from a LocalCircles study released this month. The study revealed that nearly 95% of the top 300 listed companies in India utilize at least one form of dark pattern on their digital interfaces.

In response to these pervasive tactics, regulatory authorities are preparing to enforce stricter measures. The push aims to protect consumer rights, enforce digital transparency, and rebuild long-term trust in the nation’s insurance ecosystem.