You are here: Home - Insurance - News -

FSA urged to review price comparison websites

Written by:

The British Insurance Brokers’ Association (BIBA) has urged the Financial Services Authority (FSA) to review its Insurance Conduct of Business rules for electronic introductions from price comparison websites.

The announcement comes after independent research agency FWD conducted a review of price comparison websites. The research raised concerns regarding the suitability of current FSA rules, which were finalised and implemented prior to the development of such websites.

According to the research, 84% of insurance buyers said the details of insurance policies offered on price comparison websites could be confusing. A further 93% of consumers said they expected insurance comparison websites to be regulated in the same way as insurance intermediaries.

Eric Galbraith, chief executive of BIBA, said: “The current FSA rules were written prior to the growth in these 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.”

However, Hayley Parsons, managing director of price comparison website, disagreed. She said: “All the major insurance comparison sites are already authorised and regulated by the FSA, as are the insurance companies and the brokers who appear on them.

“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. BIBA’s research isn’t telling us anything new – people find insurance confusing whichever way they buy it.” 


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Northern Rock shares on the up

Beleaguered bank Northern Rock’s shares rose by 36% in early afternoon trading yesterday, according to online broker The Share Centre.