The International Association of Insurance Supervisors has launched a consultation on a draft Issues Paper examining how insurance products deliver value to customers and how supervisors can identify and address low-value products. The paper concludes that relying solely on a buyer-beware approach may be neither fair nor effective because consumers face cognitive complexity, behavioral biases and information gaps when assessing insurance. It is descriptive and does not create expectations for implementing supervisory material. The paper identifies unsuitable product design, opaque or discriminatory pricing, bundled sales, high commissions, distribution conflicts and complex customer decisions as factors that can diminish value. Value can be enhanced through products that reward risk reduction, customer-focused claims handling, flexibility as customer needs change and downside protection. Supervisory approaches range from supporting informed purchasing to imposing product governance requirements or restricting products considered to offer low or no value, with oversight based on governance reviews, claims ratios, claims-handling indicators, costs, commissions and investment returns. The consultation closes on July 28, 2026.
2026-04-28International Association of Insurance Supervisors
International Association of Insurance Supervisors launches consultation on customer value from insurance products
The International Association of Insurance Supervisors is consulting on a draft Issues Paper covering customer value from insurance products. It finds that buyer-beware approaches may be insufficient and outlines product, pricing, distribution and claims practices that affect value, alongside supervisory tools for identifying low-value products. The consultation closes on July 28, 2026.