IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v9y2021i5p83-d547519.html
   My bibliography  Save this article

Liability for Incorrect Client Personalization in the Distribution of Consumer Insurance

Author

Listed:
  • Piotr Tereszkiewicz

    (Private Law Department, Faculty of Law and Administration, Jagiellonian University, Olszewskiego 2, 31-007 Kraków, Poland)

  • Katarzyna Południak-Gierz

    (Private Law Department, Faculty of Law and Administration, Jagiellonian University, Olszewskiego 2, 31-007 Kraków, Poland)

Abstract

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.

Suggested Citation

  • Piotr Tereszkiewicz & Katarzyna Południak-Gierz, 2021. "Liability for Incorrect Client Personalization in the Distribution of Consumer Insurance," Risks, MDPI, vol. 9(5), pages 1-15, May.
    • Handle: RePEc:gam:jrisks:v:9:y:2021:i:5:p:83-:d:547519
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/9/5/83/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-9091/9/5/83/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bernardo Nicoletti, 2017. "The Future of FinTech," Palgrave Studies in Financial Services Technology, Palgrave Macmillan, number 978-3-319-51415-4.
    2. Bernardo Nicoletti, 2017. "Financial Services and Fintech," Palgrave Studies in Financial Services Technology, in: The Future of FinTech, chapter 2, pages 3-29, Palgrave Macmillan.
    3. Antonella Cappiello, 2018. "Technology and the Insurance Industry," Springer Books, Springer, number 978-3-319-74712-5, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sriyanto Sriyanto & Muhammad Imran & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & ?Dadang Yunus Lutfiansyach? & Parmono Parmono & Abdul Wahab Pathath & Mohd Khata Jabor, 2023. "Harnessing the Power of Globalization: A Study of the Association between Globalization, Transportation Energy, and Insurance and Financial Services in Europe and Central Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 453-461, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zaleska Małgorzata & Kondraciuk Przemysław, 2019. "Theory and Practice of Innovation Development in the Banking Sector," Financial Sciences. Nauki o Finansach, Sciendo, vol. 24(2), pages 76-87, June.
    2. Xian Xu & Peter Zweifel, 2020. "A framework for the evaluation of InsurTech," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(4), pages 305-329, December.
    3. Antonella Cappiello, 2020. "The Digital (R)evolution of Insurance Business Models," American Journal of Economics and Business Administration, Science Publications, vol. 12(1), pages 1-13, January.
    4. Sharina Tajul Urus & Intan Salwani Mohamed, 2021. "A Flourishing Fintech Ecosystem: Conceptualization and Governing Issues in Malaysia," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 106-131, December.
    5. Tadiwanashe Muganyi & Linnan Yan & Yingkai Yin & Huaping Sun & Xiangbin Gong & Farhad Taghizadeh-Hesary, 2022. "Fintech, regtech, and financial development: evidence from China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-20, December.
    6. Ivan D. Kotliarov, 2020. "Digital transformation of the financial industry: The substance and trends," Upravlenets, Ural State University of Economics, vol. 11(3), pages 72-81, July.
    7. Sergey Belozyorov & Olena Sokolovska & Young Sik Kim, 2020. "Fintech as a Precondition of Transformations in Global Financial Markets," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(2), pages 23-35.
    8. Péter Fáykiss & Dániel Papp & Péter Sajtos & Ágnes Tõrös, 2018. "Regulatory Tools to Encourage FinTech Innovations: The Innovation Hub and Regulatory Sandbox in International Practice," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 17(2), pages 43-67.
    9. Tan Zi Yi & Noor Ashikin Mohd Rom & Nurbani Md. Hassan & Mohamad Shaharudin Samsurijan & Andrew Ebekozien, 2023. "The Adoption of Robo-Advisory among Millennials in the 21st Century: Trust, Usability and Knowledge Perception," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    10. Polasik, Michał & Huterska, Agnieszka & Iftikhar, Rehan & Mikula, Štěpán, 2020. "The impact of Payment Services Directive 2 on the PayTech sector development in Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 385-401.
    11. Girish Garg & Mohd Shamshad & Nikita Gauhar & Mosab I. Tabash & Basem Hamouri & Linda Nalini Daniel, 2023. "A Bibliometric Analysis of Fintech Trends: An Empirical Investigation," IJFS, MDPI, vol. 11(2), pages 1-15, June.
    12. Claire Mouminoux & Jean-Louis Rullière & Stéphane Loisel, 2018. "Obfuscation and Honesty Experimental Evidence on Insurance Demand with Multiple Distribution Channels," Working Papers hal-01819522, HAL.
    13. James Obilikwu, 2024. "Financial Technologies (Fintech) and Financial Development in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 3111-3123, June.
    14. Merello, Paloma & Barberá, Antonio & la Poza, Elena De, 2022. "Is the sustainability profile of FinTech companies a key driver of their value?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    15. Longbing Cao, 2021. "AI in Finance: Challenges, Techniques and Opportunities," Papers 2107.09051, arXiv.org.
    16. Loutfi, Ahmad Amine, 2022. "A framework for evaluating the business deployability of digital footprint based models for consumer credit," Journal of Business Research, Elsevier, vol. 152(C), pages 473-486.
    17. Marion Laboure & Markus H.‐P. Müller & Gerit Heinz & Sagar Singh & Stefan Köhling, 2021. "Cryptocurrencies and CBDC: The Route Ahead," Global Policy, London School of Economics and Political Science, vol. 12(5), pages 663-676, November.
    18. Chih-Wen Hsueh & Chi-Ting Chin, 2022. "Toward Blockchain Realization," FinTech, MDPI, vol. 1(1), pages 1-19, March.
    19. Haitham Mohamed Elsaid, 2021. "A review of literature directions regarding the impact of fintech firms on the banking industry," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 15(5), pages 693-711, October.
    20. Ruihui Pu & Deimante Teresiene & Ina Pieczulis & Jie Kong & Xiao-Guang Yue, 2021. "The Interaction between Banking Sector and Financial Technology Companies: Qualitative Assessment—A Case of Lithuania," Risks, MDPI, vol. 9(1), pages 1-22, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:9:y:2021:i:5:p:83-:d:547519. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.