FSA asked to examine comparison websites

The British Insurance Brokers Association (BIBA) has asked the Financial Services Authority (FSA) to bring financial comparison sites under its control, since the current regulations for insurance brokers were written before comparison sites became so popular.

Insurance brokers are required to consider the best product for their customers, taking into account the small print conditions which might affect individual choices, whereas some comparison sites only rank products on the basis of price.

In a survey of insurance buyers, conducted by FWD, 93 per cent of people thought that sites were regulated already.

BIBA chief executive, Eric Galbraith, explains: "The current FSA rules were written prior to the growth in aggregator sites.

"There are still too many people logging on, and making a decision solely based on the price of a policy, rather than the protections it offers them, and potentially buying an inappropriate policy."

Insurance buyers should be aware that comparison sites are useful to show them a range of options, but if they wish to buy their life, motor, pet or home insurance, they should check that it offers them the correct cover.

22/01/2008 13:08:41