Strong steering towards embedded insurance increases the risk of unsuitable consumer choices

Summary

The design of online choice environments on platforms offering embedded insurance increases the risk that consumers will take out insurance that is not appropriate for their situation, for example because the cover overlaps with existing insurance policies. During the purchase process for a product or service, consumers are often steered towards taking out insurance in multiple ways, while they do not always receive sufficient information to make an informed decision. This is evident from new...