Evolving Challenges in Insurance Law: A Comparative Study of Consumer Protection in Developing and Developed Economies

Abstract

Background:
Insurance law plays a crucial role in safeguarding policyholder rights and ensuring equitable treatment across jurisdictions. With globalization and increasing complexities in the insurance industry, legal frameworks must adapt to address challenges faced by consumers in both developing and developed economies.

Objective:
This study aims to explore the evolving challenges in insurance law, focusing on consumer protection mechanisms in developing and developed economies. It examines disparities in legal frameworks, regulatory oversight, and policyholder rights.

Methodology:
A comparative legal analysis was conducted using a qualitative approach. Data were gathered from secondary sources, including statutes, case law, and regulatory guidelines from India (a developing economy) and the United Kingdom (a developed economy). Interviews with legal practitioners and insurance regulators supplemented the study.

Findings:
The study reveals significant disparities in the enforcement of consumer protection laws. In developing economies, challenges include limited awareness of policyholder rights and inconsistent regulatory enforcement. Conversely, developed economies demonstrate robust frameworks but face emerging challenges such as adapting laws to evolving digital insurance models and artificial intelligence-driven underwriting. The findings underscore the need for international legal cooperation to harmonize standards and enhance consumer trust.