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Insurance -
FSA reports leading website comparison sites are incorrect or out of date - 15/06/2008
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The Financial Services Authority have found that many leading website comparison sites are providing consumers with incorrect or sometimes out of date information, however they also do point out that other comparison sites who are new and up and coming were providing clear, fair and not misleading to customers, an FSA investigation found.
The authority watchdog had studied around seventeen price comparison websites online and will now visit each individually to test the information they are providing. This is because the online comparison sites instigate around25% of all private motor insurance sold each year.
The FSA said that although all the sites had been properly authorised, there was "mixed evidence" in the clarity, fairness and accuracy of information given to their customers.
The FSA claimed that the 17 sites involved in the study had all been authorised, despite the concerns that were raised by the by the British Insurance Brokers' Association (BIBA). What the FSA requires from the online price comparison websites is to maintain a consistent level of detail that they give on different policies, and to ensure that the information they provide is correct and updated on a regular basis, and also to highlight very clearly on any assumptions made to generate quotes.
The number of comparison websites has ballooned in size over the last few years, as more consumers use them to find a cheaper deal on a range of financial products. However some online price comparison sites may not really offer the best deals, this is because many of the online price comparison sites receive commission from the companies they recommend to consumers. Price comparison sites online provide around thirty million pounds in revenue for car insurance companies.
Also earlier this month the Centre for Competition Policy (CCP) at the University of East Anglia called for independent checks to ensure information on all price comparison websites was fair and accurate.
Steve White, who is BIBA's head of compliance and training, is pleased with the news that the FSA is calling for the online price comparison sites to give more information to their consumers. But had also added that:
"This is a great start, but the FSA must go further. Like brokers, comparison sites should guarantee their quotes."
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