Regulators Identify Flaws in Comparison Websites
January 2010
For customers using price comparison websites regulators are finally cracking down on the tendency to provide a fast quote rather than an accurate one.
The Association of British Insurers (ABI) has now published standards to help the millions of customers who buy their insurance online, receive realistic premium quotes and clearer information regarding the policy, such as excess levels.
This move to issue new standards has been made following a review by the FSA of the Price Comparison sector in 2008, which found that some websites were not treating customers fairly.
This guidance sets standards in seven different areas to ensure that consumers experience a positive online experience that clearly explains the policy excess, what cover is provided as standard and which features are sold as optional features for an additional premium, such as Home Emergency cover with Home insurance. Consumers also need to be given the choice to review any assumptions that were made about them or their needs to generate their quote. Key features about the policy, including the significant exclusions should also be made more prominent.
This is why you, the intermediary, are uniquely poised as your relationship with your clients allows you to explain the cover options, exclusions and premiums in a level of detail that a website finds difficult to do and that these standards now require. The quality of your advice and expertise far outweighs the benefits of finding a quick quote online.
Nick Starling, the ABI's director of general insurance, pointed out that using the internet can help customers obtain "the best policy at the most competitive price. But the ease and speed of going online must be balanced with ensuring that people understand the terms, conditions and cover of the policies they are comparing."
This is also why including general insurance within the portfolio of products that you can offer your customers is a must, as you can ensure that their general insurance needs are adequately looked after.
Our Broker Toolkit is our sales support pack and contains a series of tools and guides to help you with your general insurance sales. Furthermore our series of Direct Mail Campaigns and Email Campaigns can help you execute a campaign to contact your existing clients and ask them about their general insurance needs.
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