Insurance comparison websites

The FSA has been reviewing insurance comparison websites. It wants to be sure that they are all clear and fair.

They say the overriding principle for firms to comply with is that the information provided to consumers must be clear, fair and not misleading. In particular:

• Where an insurance comparison site uses assumptions to generate quotes, we expect any assumptions made to be reasonable, and clearly highlighted to consumers;


• Sites comparing a limited number of features, and in particular where comparison is only on the basis of price, should explain to consumers in a clear and timely way that the products being compared may have different features, and that features, other than price, should be taken into account before purchasing a policy;


• Firms should have processes in place to ensure that all information provided is correct and updated on a regular basis. This includes an expectation that firms will have systems and controls in place to ensure that the information provided by consumers is correctly relayed to the broker or insurer.


• Firms should take a consistent approach to the provision of information, and the basis for providing certain pieces of information should be clearly explained to the consumer;


• Firms should not give a misleading impression of their market coverage.

One good idea is to shop around the comparison sites! And not all big insurers will necessarily paticipare in all of them.