The Comparison Consortium and ABI to develop code of practice
The Comparison Consortium, the trade body established earlier this year to regulate and represent the online price comparison industry, has announced plans to develop a new code of practice for online insurance aggregators, with the ABU.
The Comparison Consortium is establishing a working group with input from the ABI, to develop a code of practice for online insurance aggregators and professional guidance for insurers which use them. The working group will create an accreditation scheme for websites that adhere to its code of practice, bringing an unprecedented element of regulation and professional standards to the industry as a whole.
Richard Mason, acting head of the Comparison Consortium said: ‘Since the establishment of the Comparison Consortium earlier this year we have been working hard behind the scenes to establish strong working relationships with other industry bodies where we have a mutual interest. The establishment of this working group illustrates the growing level of respect for our organisation within the price comparison industry.
“Price comparison websites have revolutionised the insurance industry, and insurers have responded accordingly by adapting pricing strategies and becoming more price-creative; specialist brands have flourished, while value-add incentives used as marketing bait, have become commonplace. However, while the trend of providing preferential policies and acquisition incentives is flourishing in response to the industry’s need to be more competitive, this approach has led to a disparity in the way prices are displayed online.
“Such products are great for consumers providing they fully understand what’s included within their policy and are not misled by insurers desperate to leap to the top of the results table” added Mason. “Similarly, while comparison websites have become indispensible, it’s time they realised that customer decision-making doesn’t solely revolve around price.
“The Comparison Consortium aims to address some of these issues and we look forward to working with the ABI to bring about a greater level of clarity and transparency to the market as a whole, something that can only be a good thing for consumers and insurers alike.”
