Direct-to-Consumer Insurance Marketing:A Systematic Review of Legal, Ethical, and Consumer Perspectives

Abstract

Purpose: This study systematically examines the evolving landscape of Direct-to-Consumer (D2C) insurance marketing with a focus on legal standards, advertising ethics, and consumer outcomes. As digital platforms increasingly replace traditional intermediaries, the research investigates the implications of this transition for regulatory compliance, ethical conduct, and user welfare.
Design/Methodology/Approach: Following PRISMA guidelines, a Systematic Literature Review (SLR) was conducted across databases including Scopus, Web of Science, and IEEE Xplore. The review screened 1,400 records, resulting in the final inclusion of 68 peer-reviewed publications from 2004–2024. The study integrates thematic synthesis and meta-analysis to evaluate patterns and effect sizes across empirical findings. Quality appraisal was performed using CASP and JBI checklists to ensure methodological rigor.
Findings: The study finds that D2C models enhance efficiency and personalization in insurance distribution but simultaneously introduce ethical and regulatory challenges. Emotional manipulation, lack of disclosure, and algorithmic opacity are widespread in D2C advertising. Jurisdictions with strong regulatory oversight (e.g., EU, India) demonstrate better consumer satisfaction and trust outcomes. Meta-analysis shows a moderate but significant positive correlation between ethical marketing practices and consumer decision confidence.
Research Limitations/Implications: The review is restricted to English-language literature and peer-reviewed sources, excluding grey literature. Empirical generalizability is limited due to inconsistent methodologies and limited longitudinal data in reviewed studies. However, the study lays groundwork for future empirical investigations using RCTs, algorithm audits, and cross-country legal evaluations.
Practical Implications: Insurance companies must ensure transparency, fairness, and digital literacy support in D2C platforms. Regulators are urged to develop harmonized frameworks for digital consent, advertising standards, and algorithmic accountability. Ethical marketing codes and real-time regulatory oversight (e.g., RegTech) are critical to safeguard consumer rights.
Originality/Value: This is one of the first comprehensive SLRs with meta-analytic integration on D2C insurance marketing that spans ethical, legal, and behavioral dimensions. By combining insights from stakeholder theory, technology acceptance, and regulatory frameworks, the study offers a multi-perspective lens to guide academic research, policy formulation, and industry best practices in digital insurance ecosystems.