The British Insurance Brokers’ Association (BIBA) supports the regulation of insurance comparison sites
The broker trade body has given a formal response to the FSA. Then, the broker trade body commented that we have to sell of general insurance policies through price comparison websites. In addition, BIBA recorded that before they got wide market, penetration the new of comparison sites avoided specifically targeted regulation because FSA rules had been written.
Graeme Trudgill as BIBA’s Head of Corporate Affairs told that in the sale process, comparison sites had to have primary involvement to apply appropriate regulatory guidelines in place. He also added that BIBA agreed in full with the draft FSA guidelines. In addition, BIBA wanted co-operate with the regulator. We believed that the cost benefit analysis would demonstrate these important changes and could be implemented for a relatively small sum.
The main issues of BIBA, which highlighted were:
• Comparison sites had to give relevant information including disclosure documents to customers.
• They had to ensure that sales procedures were in accordance with the ICOBS rules.
• They had to explain terms and conditions, give a proper statement of demands and needs to customers.
Steve White as BIBA’s Head of Regulation and Training said that an important step in consumer protection was they had to give customers a better understanding of the products they had bought. Therefore, the guidelines had to be fully implemented without delay.