BIBA endorses proposed FSA aggregator guidance
The British Insurance Brokers’ Association (BIBA) has come out in favour of the Financial Services Authority’s (FSA) proposed guidance on the selling of general insurance policies through price comparison sites.
Aggregators are not currently subject of any specific FSA rules and BIBA has fully endorsed the new draft guidelines, highlighting its top issues as follows:
The sites must be recognised as more than just introducers, they are arranging, sometimes advising, and these activities bring more appropriate regulatory responsibility.
Comparison sites must provide customers with the relevant information including the disclosure documents.
They must ensure their sales procedures are in accordance with the ICOBS rules.
They must explain the terms and conditions, ensure the customer’s eligibility, provide status disclosures around suitability of advice and provide a proper statement of demands and needs.
The practice of ‘pre-population’ of answers with defaults should end.
BIBA’s head of corporate affairs, Graeme Trudgill, comments: “These sites have primary involvement in the sale process of personal lines insurance and it is very important that they have appropriate regulatory guidelines in place.”
Category: BIBA News, Financial Services Authority News
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