Which of the following is a potential impact of commoditisation in the insurance market?

Commoditisation in the insurance market refers to the process by which products become indistinguishable from one another, leading to heightened competition among insurers. This increased competition typically drives prices down, as companies strive to attract customers by offering more attractive pricing compared to their rivals. As insurance products become standardized and similar, the primary differentiator for consumers tends to be price, leading to lower premiums across the board.

The other options present scenarios that do not align with the implications of commoditisation. Personalized services, improved financial advice, and more complex tailored products generally arise in a market where differentiation is possible, and businesses can distinguish themselves through unique offerings rather than competing solely on price. In a commoditised market, the emphasis shifts away from these factors.