The ABI and the Comparison Consortium, the trade body which regulates and represents the online price comparison industry, is establishing a working group in a bid to bring regulation and professional standards to the industry as a whole.
The aim of the group is to develop a code of practice for online insurance aggregators and professional guidance for insurers who utilise them. In addition, the working group will create an accreditation scheme for websites that adhere to its code of practice.
The Comparison Consortium acting head Richard Mason says the establishment of this working group illustrates the growing level of respect within the price comparison industry.
He says: “Price comparison websites have revolutionised the insurance industry, and insurers have responded accordingly by adapting pricing strategies and becoming more price-creative. 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.
“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.”