Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 21st of November 2017
February 23, 2009

New code of practice for price comparison websites

by Gill Montia

Story link: New code of practice for price comparison websites

The trade body that regulates and represents the online price comparison industry is joining forces with the Association of British Insurers (ABI), to develop a new code of practice for online insurance aggregators.

The Comparison Consortium was launched this year following an investigation by the Financial Services Authority into claims by consumer groups that price comparison websites were encouraging consumers to buy the wrong kind of insurance.

It has now established a working group with the ABI to develop a new code of practice and an accreditation scheme for online insurance aggregators.

At the same time, it is drawing up professional guidance for the insurers that sell through the sites.

Price comparison websites have revolutionised the insurance industry and sharpened competition.

However, the Consortium’s acting head, Richard Mason, is concerned that while “the trend of providing preferential policies and acquisition incentives is flourishing in response to the industry’s need to be more competitive, this approach has led to a disparity in the way prices are displayed online”.

 

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