Every Insurer Said It Had No Dark Patterns. The Regulator Sent Auditors Anyway

Article summary

The Insurance Regulatory and Development Authority of India is moving against dark patterns — deceptive interface design that manipulates users into choices they would not otherwise make — on digital insurance platforms. In April 2026 the regulator directed insurers to assess themselves and report observations; almost all responded that they had none, a result that prompted IRDAI to commission independent verification through the Institute of Public Auditors of India, which is to study and monitor the sector over nine months. The customer evidence points the other way. A LocalCircles survey of more than 87,000 insurance customers across 341 districts found that 85 per cent said insurers required them to share excessive personal data, up from 57 per cent over the preceding twenty-four months; roughly 80 per cent reported hidden charges or difficulty cancelling policies; and nearly 90 per cent received repeated promotional calls or messages after sharing their details. Platforms examined included Policybazaar, Acko and Tata AIG, with major aggregators each exhibiting between two and four identified patterns. IRDAI has signalled a consultation paper in July 2026 on distribution reforms, expected to address mis-selling, transparency and the commission-based distribution model that underlies much of the problem.