The review was launched after research, commissioned by BIBA, which showed potential for serious consumer detriment across insurance comparison websites. In particular, the research showed that 84% of insurance buyers said that the details of insurance policies offered via price comparison websites can be confusing.
Steve White, BIBA’s Head of Compliance and Training, added: “This is a great start, but the FSA must go further. Like brokers, comparison sites should guarantee their quotes.
“We are pleased that the FSA is calling for comparison sites to give more information to consumers so they understand how their premiums are being calculated, their scope of cover and the level of excess on their policy.
“We are also delighted that the FSA has stressed the importance of advice when purchasing insurance. It is vital that consumers focus on the level of cover provided by a policy, not just the price. Calling a broker is the simplest way for consumers to get this advice, ensuring they get the right cover at the right price.”
