For Immediate release – Monday 23 February 2009

Commenting on the announcement that the Comparison Consortium will work with ABI to agree a new industry code of practice for price comparison websites, BIBA Chief Executive, Eric Galbraith, said:

“I am not convinced that customers are being treated fairly by some of the comparison websites.  BIBA raised this issued following our research last year which highlighted consumer detriment and resulted in an FSA review into the practices of comparison websites. 

“Since early last year we have been calling for guaranteed premiums,  the use of facts and not assumptions as the basis for quotations, explanations of  what the policy does and does not cover and the differences between each insurance policy made clearly visible. I strongly believe that these factors should be a minimum standard practice for all comparison websites and should form the basis for any code of conduct.  BIBA will continue to monitor the situation and work with the industry to find a solution.”

Steve White, BIBA Head of Compliance and Training, added:

“BIBA welcomes any move to improve the clarity and quality of information supplied to consumers via aggregator websites. BIBA supported the recommendations made by the Financial Services Authority’s review in 2008 and believe that the FSA’s Rules and Principles, particularly in respect of clear, fair and not misleading communication, if applied correctly and enforced, should give consumers adequate protection.”

In January 2008, BIBA published market research which showed that:

• Over half of insurance buyers interviewed believe that customers do not fully understand the differences between each insurance policy offered via comparison websites
• 94% of insurance comparison website users do not believe that the details of what the policy covers and does not cover are explained fully
• 84% of insurance buyers said that the details of insurance policies offered via price comparison websites can be confusing
• 93% of consumers believe that insurance comparison websites should be regulated in the same way as insurance intermediaries
• 63% of buyers are nervous about purchasing from comparison websites
• 59% of insurance comparison website users believe that it was not very obvious or not obvious at all who the policy was underwritten by.

-ends-

Notes to editors

1. For further information please contact:

BIBA press office:
Leighann Burtrand, Communications Manager
020 7397 0223
burtrandl@biba.org.uk

2. About British Insurance Brokers' Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA represents 2,400 insurance brokers and intermediaries, including 1,700 FSA authorised firms. Insurance brokers and intermediaries distribute nearly two-thirds of all UK general insurance. In 2007, insurance brokers and intermediaries generated £1.5 billion of invisible earnings and they introduce £22 billion of premium income into London’s insurance market each year.

BIBA is the voice of the industry, advising members, the regulators, the Government, consumer bodies and other stakeholders on key insurance issues.  BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards. BIBA works closely with the Chartered Insurance Institute to provide training to those working in the industry and actively participates in helping the industry and its customers deal with some of the major issues of the day.

BIBA members provide professional advice to businesses and consumers, playing a key role in identification, measurement, management, control and transfer of risk.  They negotiate appropriate insurance protection tailored to individual needs and operate to a very high standard of customer service with the aim of ensuring peace of mind, security, financial protection and the professional advice required.

To find your nearest BIBA broker visit the ‘Find A Broker' section of the BIBA website, www.biba.org.uk or call BIBA’s consumer helpline on 0870 950 1790