The Case for Good Disclosures – Building A Two-Way Road Towards Suitable Insurance Sale
In this note, we discuss how the difficulty of selling life insurance led to bundling insurance with savings2, how such bundling can be sub-optimal, and why such products are popular despite adverse customer experiences. We then make a case for providing relevant, complete, and comparable information that can aid suitable product decisions, sale, and persistence. We also offer a template for what such a Customer Information Sheet could look like.
Advancing Digital Financial Inclusion of Women from Low-Income Households
In an increasingly digitized world, Digital Financial Services (DFS) have emerged as a key tool for transacting, borrowing, saving, and investing. Policymakers and Financial Service Providers (FSPs) are keen to leverage DFS to advance financial inclusion, particularly for women from Low-Income Households (LIHs).
Our response to the RBI’s Draft framework for recognising Self-Regulatory Organisations (SRO) for FinTech Sector
Our response covers two themes:
Leading from a customer protection perspective, our comments emphasise the need for the prospective SRO to have duties towards the customers, at par with responsibilities towards the regulator.
Insuring Low-Income Households- Why disclosure matters
In this deck, we discuss some factors influencing life insurance take-up, the problem with endowment life insurance for the low-income segment, and how better disclosures could be the first step in helping households choose the right insurance product for them.
Suitable or unsuitable? Understanding the role of credit in finances of low-income households
Low-income households seek loans often, but credit is suitable if it helps sustain or improve financial well-being. This is what must be ensured by lenders, regulators & policymakers.
Tracing the History of IRDAI’s Regulations on Suitability and its Interpretations by Market Participants – Part 2
In this blog post, which is the second part of the two-part series, we studied the suitability formats of four life insurance companies and found many contrasts in the manner in which IRDAI’s suitability regulations of 2019 has been implemented.
Tracing the History of IRDAI’s Regulations on Suitability and its Interpretations by Market Participants – Part 1
This blog post, which is the first of a two-part series, aims to trace the history of IRDAI’s regulations regarding suitability assessments for life insurance.
Primer on Suitability for Consumer Data Use and Product Design-4th Dvara Research Conference Regulating Data-Driven Finance April 5-6, 2019
he increasingly-pervasive use of personal data in the provision of financial services can enable providers to offer suitable financial products, at a scale. Internationally, suitability or appropriateness in finance is conceptualised as “the degree to which the product or service offered by the intermediary matches the retail client’s financial situation, investment objectives, level of risk tolerance, financial need, knowledge and experience”
Primer on Suitability for Consumer Data Use and Product Design
Primer on Suitability for Consumer Data Use and Product Design – 4th Dvara Research Conference
A Practical Note on Operationalising Suitability in Microcredit
This Note has been prepared for regulated lending institutions who are in the business of
offering small-ticket short-term unsecured loans with equated monthly or weekly repayment
schedules, to low-income individuals and households in India.
