What does commoditisation refer to in the context of protection products?

Commoditisation in the context of protection products refers to a trend where these products are standardized and available for purchase through direct channels, particularly online, rather than through traditional means such as financial advisers. This shift allows consumers to access and compare different protection products more easily, leading to a more transactional nature in the purchasing process.

When protection products become commoditized, they typically lose some of their unique features and become more uniform, which can simplify decision-making for consumers. This makes it easier for individuals to research and select policies based on price and basic coverage options without needing specialized advice. The proliferation of online platforms facilitates this trend, allowing consumers to make purchases and comparisons at their convenience.

In contrast, the other options do not accurately reflect the essence of commoditisation. They discuss complexity and customization, face-to-face comparisons, and regulatory aspects—all of which are separate concepts that do not directly relate to the idea of commoditisation within the insurance industry.