On this call we examined the practical aspects of proportional disclosure regulation, which can encourage the industry to offer inclusive insurance while ensuring consumer protection. This call also leveraged the lessons learned from the recent A2ii study, which was commissioned by the IAIS, titled “Proportionality in practice: Disclosure of information” which can be downloaded for free here.
ICP 19 guides the interactions between clients, distribution channels, and insurers with regards to disclosure. However, the ICP also acknowledges that these requirements may vary according to a number of factors, including culture, the legal regime, the degree of development of the insurance sector and the knowledge and experience of a typical customer. For an inclusive insurance customer, simpler or language-sensitive disclosure might be required in order to ensure they are able to make decisions in an informed manner. Proportionate regulations in respect of disclosure can be done by allowing simplified, customised, or electronic disclosure of information, or tailoring requirements for agents to provide verbal product advice, for example. These measures enable insurers to reduce transaction and operational cost, as the traditional practice of printing and delivering extensive documents is costly.