Price comparison websites under fire by the FCA

[Legal Beagles]

We found that PCWs : did not always ensure that consumers were given the appropriate information to help them make informed decisions. This is particularly important as FCA is concerned that consumers’ focus on headline price and brand when using PCWs could distract from crucial product features such as policy coverage and terms. By failing […]

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[Amethyst]

Re: Price comparison websites under fire by the FCA

We assessed whether PCWs were complying with their regulatory requirements and were providing appropriate information to ensure that consumers can make informed decisions when buying their general insurance policy. This included us assessing whether information was being presented in a way that allowed consumers to compare key product features, total costs and main exclusions and understand the role of the PCW and the service they provide.
Thematic Review TR14/11
Price comparison website: Consumer market research


What did we find?

We found that PCWs :

• did not always ensure that consumers were given the appropriate information to help them make informed decisions. This is particularly important as FCA is concerned that consumers’ focus on headline price and brand when using PCWs could distract from crucial product features such as policy coverage and terms. By failing to provide clear information, the websites are increasing the risk that consumers may buy products without understanding key features such as level of cover or excess levels and purely focus on the price. While a few websites did provide this information clearly the level of clarity varied significantly depending on the provider.
• did not make clear their role in the distribution of the product or the nature of service they provided. For example, some consumers mistakenly believe that the price comparison website had provided them with quotes on the best policy for their individual needs and had assessed the suitability of the policy for them.
• that where a PCW were part of a larger group of an insurer or broker, disclose this potential conflict of interest, which is against FCA rules. However, the FCA found no evidence that these firms used this relationship to their commercial advantage.
• had taken steps to comply with their regulatory obligations, they had failed to fully implement Guidance published in 2011.

http://www.fca.org.uk/news/tr14-11-p...surance-sector

[wales01man]

Re: Price comparison websites under fire by the FCA

Got quote from one site for car insurance Tesco quote on PCW 50 quid dearer than going direct to Tesco think its a con pity people go there instead of direct

[MIKE770]

Re: Price comparison websites under fire by the FCA

Got quote from one site for car insurance Tesco quote on PCW 50 quid dearer than going direct to Tesco think its a con pity people go there instead of direct

Same with me.

also Home insurance direct with legal & general than comparison site = £50.00 cheaper for the same quote.