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Liability for Incorrect Client Personalization in the Distribution of Consumer Insurance

Author

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  • 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
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    References listed on IDEAS

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    1. Bernardo Nicoletti, 2017. "The Future of FinTech," Palgrave Studies in Financial Services Technology, Palgrave Macmillan, number 978-3-319-51415-4, June.
    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, December.
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    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.

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