BIBA pushes FSA on price comparison sites

by Brian Turner

Story link: BIBA pushes FSA on price comparison sites

The British Insurance Brokers’ Association (BIBA) is challenging the Financial Services Authority (FSA) to review its Insurance Conduct of Business rules for electronic introductions - specifically price comparison sites that list insurance products.

This comes in the wake of a study funded by BIBA and carried out by FWD, which came to the conclusion that most consumers:

1. did not understand key differences between different insurance products;
2. found such sites confusing when it came to checking policy details
3. did not realiuse such sites were not FSA regulated

Additionally, the study found that assumptions which may not be applicable to individual consumers were being applied for comparison purposes, which could provide misleading quotes.

Commenting on this research, BIBA Chief Executive, Eric Galbraith, said: “The current FSA rules were written prior to the growth in aggregator sites. I believe the regulator should now look again at developing more appropriate regulations, to ensure that consumers are being afforded suitable protections.

“There are still too many people logging on, and making a decision solely based on the price of a policy, rather than the protections it offers them and potentially buying an inappropriate policy.”

BIBA is now pushing for the FSA to investigate a possible regulatory framework to apply to price comparison sites.