Insurance: Comparison sites under microscope
Insurance comparison site regulation demanded
Tuesday, 22 Jan 2008 10:49
Insurance brokers are calling for tighter regulation of price comparison websites.
The British Insurance Brokers' Association (Biba) is pushing watchdog the Financial Services Authority (FSA) to bring in greater regulatory oversight for the sites.
Biba's first manifesto states: "We believe consumers should be provided with the same suite of disclosures, irrespective of where they choose to buy their insurance."
The BBC now reports the FSA is considering an investigation of the insurance comparison market – considering whether the sites are giving advice by ranking products key to the debate.
Hayley Parsons, managing director of comparison website Gocompare.com, said Biba's call for tougher regulation was unnecessary.
"Had Biba's comments come two years ago I might have agreed with them, however the new players in the comparison market have led the way in terms of providing far more product information to help consumers make the most informed choice and find the best product for them," she said.
"Price comparison websites have been a force for good in terms of transparency and allowing consumers to check their renewal premium against typically around fifty other insurers."
Ms Parsons added: "The best comparison sites now deliver a huge amount of product information so consumers can see at a glance what the different providers offer."
Debra Williams, managing director of Confused.com, said the FSA rules were inappropriate, being established before the development of price comparison websites.
"It is imperative customers are provided with a fair and transparent service," she said.
"Employing detailed questions to encourage open and honest responses, as opposed to basing quotations on ‘assumptions’, is the key to receiving an accurate quotation and, in turn, purchasing a tailored policy."