There's been a bundle of new rules and regulations for insurers who advertise online drip feed out in 2009. Most of which have come as a part of the joint FSA / OFT review of online marketing practices in general.
The ABI (Association of British Insurers) has teamed up with Which?, BIBA (British Insurance Brokers Association) and a bundle of comparison and aggregation websites to create 17 page guide on how these sites can ensure a positive customer experience.
Other than a few bits and bobs from the FSA, comparison sites have remained relatively un-regulated in the UK marketplace. Of course they have to adhere to FSA standards, however there have never been any rules, or even suggested rules of conduct, around how information is presented to consumers to ensure clarity.
This has been exploited, with some comparison sites listing providers who have pay the most higher than those that are actually a better consumer deal. This is not in the best interests of the consumer and wholly in the best interest of the comparison site.
The new guidelines, called "Ensuring Positive Customer Experiences of Buying Insurance Online", is an attempt to create a level playing field amongst comparison sites whilst putting the best interests of the consumer at the centre.
I'm all for these sort of initiatives. Anything that makes things simpler and clearer for the consumer in financial services is a good thing in my book.
As these are only guidelines, theres no real requirement for websites to follow them. I'd like to see some hard and fast regulation of this nature. It's not rocket science and would go a long way to ensuring consumers get the policies they really want.
You can have a look at the guidelines on the ABI website
Thanks to Phil MacKechnie (@akcamiwik) for the twitter tip off.
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