The Effects of Regulatory Changes on Life Insurance Products and Consumer Protection

This paper examines the recent regulatory changes affecting life insurance products and their implications for consumer protection. Key reforms in the European Union, United Kingdom, Australia, and New Zealand have introduced stricter accountability standards, enhanced disclosure obligations, and improved fairness in product design. For instance, the EU updated Solvency II directives in 2025 to better address sustainability and policyholder safeguards (European Commission, 2025). The UK’s Consumer Duty requires insurers to deliver good customer outcomes (Financial Conduct Authority, 2023). Australia’s Financial Accountability Regime, effective in 2025, increases executive accountability (Australian Treasury, 2025), while New Zealand’s CoFI regime mandates ethical conduct and transparency (Financial Markets Authority, 2025). These changes enhance consumer trust but also challenge insurers to balance compliance with innovation and affordability.