Artikel

Liability for incorrect client personalization in the distribution of consumer insurance

The use of personalization mechanisms should allow the insurance distributor to reduce exploration costs and adjust the offered insurance product to the needs, features, and situation of each individual client. This study seeks to examine how liability should be allocated when the process of the personalization of an insurance product does not result in the client's choice of an optimal product. First, we identify the typical uses of new technologies allowing for an adjustment of insurance contracts. Second, we analyze the interplay between their application and the legal obligations of insurance product distributors. Subsequently, the paper discusses the scope of factors the insurance distributor is liable for when using personalizing tools in contacts with clients. We submit that offering an online personalization of insurance products ought to be regarded as being equivalent to providing advice under Art. 2, Sec. 1, Point 15 of the European Union Insurance Distribution Directive (IDD). From the consumer's perspective, our analysis makes the case for the insurance distributor's liability for mispersonalization of an insurance contract.

Language
Englisch

Bibliographic citation
Journal: Risks ; ISSN: 2227-9091 ; Volume: 9 ; Year: 2021 ; Issue: 5 ; Pages: 1-15 ; Basel: MDPI

Classification
Wirtschaft
Subject
advice provision
big data
insurance
insurance contracts
insurance distribution
InsurTech
personalization

Event
Geistige Schöpfung
(who)
Tereszkiewicz, Piotr
Południak-Gierz, Katarzyna
Event
Veröffentlichung
(who)
MDPI
(where)
Basel
(when)
2021

DOI
doi:10.3390/risks9050083
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Tereszkiewicz, Piotr
  • Południak-Gierz, Katarzyna
  • MDPI

Time of origin

  • 2021

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