The International Association of Insurance Supervisors is seeking feedback on a draft issues paper about consumer value for money.

The paper says poor value – or perceived lack of value – and low trust can deter insurance take-up, and it describes the challenges consumers face in evaluating offerings.

People may find it hard to assess the value of insurance, particularly product features, exclusions and pricing structures, which can lead to poor decisions.

A “buyer beware” approach that places full responsibility on consumers to avoid low-value products may not be fair or effective, the IAIS says.

The paper gives examples of how supervisors in different jurisdictions consider fair value or value for money, and how they can act if consumers are being sold low-value products.

It says insurers can enhance value through thoughtful product design that rewards risk reduction; responsive and consumer-focused claims handling; and flexibility to adapt to changing consumer needs.

Feedback is due by July 28. Find the paper here.