23 Jan, 2008
Marcel Le Gouais
Financial Services Authority could review how it regulates
insurance price comparison websites as a result of new research
from the British Insurance Brokers' Association.
BIBA urged the FSA to overhaul its Insurance Conduct of Business
rules for electronic introductions, following the independent study
it commissioned into websites.
BIBA discovered through its research that only 6% of insurance
comparison website users believe the details of what policies
covers are explained fully.
The study also revealed that 84% of insurance buyers said the
details of insurance policies offered via comparison websites could
A spokesman for the FSA says: "At the moment we are
investigating BIBA's research and thinking about what implications
it might have for how we regulate price comparison sites.
"We are taking this very seriously and recognise the substantial
growth of price comparison sites in the past two years."
BIBA's survey also found that 93% of consumers expect
insurance comparison websites to be regulated in the same way as
Eric Galbraith, chief executive of BIBA, says: "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."