Price comparison websites going downhill
Price comparison websites have got a lot of attention lately and the result is shocking it was found that they provide in false information and increase the risk of customers by subscribing to an insurance cover that don’t suit them as the policy terms are not completely disclosed.
The news comes from UK’s financial regulator, the Financial Conduct Authority which said that it was concerned that the consumers might be carried away by brand names and headline price and not read between the lines about information regarding 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,” said the FCA. It also accepted that a few websites provide all information, however, the stability and standard varied significantly.
The information that was not properly delivered included the insurance company’s policy about having certain medical conditions while traveling, and the additional charges incurred on certain conditions and that the insurer’s personal data being used by the company for various purposes.
It was also revealed that one third of the sales happening in motor insurance sector comes from these price comparison websites and some websites are independent, i.e, the website is owned by a motor insurer admiral. There are also insurance companies that do not depend on such websites to sell insurance.
FCA director of supervision Clive Adamson said, “We expect price comparison websites to take on board the findings of the review.” However, the FCA is not taking any steps to stop these websites from these activities.
They have wanted that it is the responsibility of consumers to understand the terms and policies of the insurance they decide to buy and not just choose something which these websites recommend.
The research is still continuing and is a part of the ongoing study on the insurance products sold in the country.