Following the publication earlier this year of a report on general insurance comparison websites which welcomed the competition that they would bring, the FSA have now, in a second stage review the results of which have just been published, called for the industry to take prompt action to provide consumers with clear information on excesses and assumptions.
The FSA have stated that aggregator companies must:
- ensure that any assumptions about the customer used to generate quotes are clearly and prominently displayed on the website and at all stages of the consumer's online 'journey' so that the customer is aware of these assumptions;
- provide clear and accurate details about policy excesses;
- ensure that any statements in their advertising and communications material are factually correct, accurate and up-to-date;
- avoid creating adverts that give consumers an unrealistic perception of the market coverage of the aggregator;
- ensure any price/savings claims in their advertising are meaningful to the target audience and a fair representation of what they can be expected to receive.
One of the key examples the FSA have cited as bad practice is "Using price as the sole basis for "comparison", but not advising consumers that they should consider other factors, and that the difference in price is likely to reflect the different levels of protection offered by the policies." This has been a complaint of BIBA members from an early stage.
The FSA's examples of 'good' and 'poor' practice in comparison websites can be found at:
http://www.fsa.gov.uk/pages/Doing/Regulated/Promo/thematic/practice_gi_comparison.shtml
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
