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| Insurance price comparison sites failing, says FCA | Insurance price comparison sites failing, says FCA |
| (about 1 hour later) | |
| Far from helping consumers to choose insurance policies, price comparison sites may be confusing them further, according to the regulator. | Far from helping consumers to choose insurance policies, price comparison sites may be confusing them further, according to the regulator. |
| The Financial Conduct Authority (FCA) says some sites are failing consumers' expectations, while a number are breaking the rules. | The Financial Conduct Authority (FCA) says some sites are failing consumers' expectations, while a number are breaking the rules. |
| The FCA said consumers were not being given the right information to help them make decisions. | The FCA said consumers were not being given the right information to help them make decisions. |
| Of 14 sites reviewed, many were unclear and were failing regulatory standards. | Of 14 sites reviewed, many were unclear and were failing regulatory standards. |
| The FCA said comparison sites tend to focus too much on price, without telling consumers about other policy details - such as the excess they might have to pay in the event of a claim. | The FCA said comparison sites tend to focus too much on price, without telling consumers about other policy details - such as the excess they might have to pay in the event of a claim. |
| It said that some consumers mistakenly believed 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. | |
| Conflict of interest | |
| In addition, some sites which are owned by an insurance company or an insurance broker, are failing to flag up a potential conflict of interest. | In addition, some sites which are owned by an insurance company or an insurance broker, are failing to flag up a potential conflict of interest. |
| This is against FCA regulations. | This is against FCA regulations. |
| Small print on the Gocompare.com website informs customers that it is 50% owned by esure, an insurance company. | |
| Those who read right to the bottom of another site, Confused.com, will see that it is owned by Admiral Insurance. | |
| "However, we are a completely separate business, and pride ourselves on impartiality and independence," according to the website. | |
| Tesco Compare - whose owner, Tesco, sells insurance directly - has not yet commented on the FCA report. | |
| However, the FCA found no evidence that such firms had profited as a result. | |
| 'Misconceptions' | 'Misconceptions' |
| The FCA said that one-third of consumers - more than eight million people - buy their motor insurance through price comparison websites, but many people were not getting the service they expected. | The FCA said that one-third of consumers - more than eight million people - buy their motor insurance through price comparison websites, but many people were not getting the service they expected. |
| "Our review found that they were not meeting our requirements in delivering fair and consistent outcomes for consumers," said Clive Adamson, the FCA's director of supervision. | "Our review found that they were not meeting our requirements in delivering fair and consistent outcomes for consumers," said Clive Adamson, the FCA's director of supervision. |
| However some of the websites which the FCA reviewed said they did give customers more than a simple price comparison. | |
| "Gocompare.com has always strived to show its customers the full story when it comes to insurance comparison, and was the first comparison site to enable its customers to compare the levels of cover, as well as price," said Hayley Parsons, the founder and CEO of Gocompare. | |
| The FCA expects the price comparison websites to "take on board the findings". | The FCA expects the price comparison websites to "take on board the findings". |
| The FCA will be providing individual feedback to the price comparison sites involved, and asking them to take action on specific areas where they are failing to meet its expectations. | The FCA will be providing individual feedback to the price comparison sites involved, and asking them to take action on specific areas where they are failing to meet its expectations. |