Insurer welcomes FCA thematic review on price comparison sites
Direct Line Group has welcomed the findings of the FCA’s review of price comparison sites and called for more clarity from aggregators.
The FCA published the findings of its review yesterday, concluding that price comparison sites are falling short of the regulator’s requirements and customer expectations.
The insurer, which is not listed on aggregator websites, said: “Direct Line Group welcomes any recommendations that will help customers make informed decisions when purchasing insurance.
“While we agree with some of the points raised in the FCA’s report, we believe further measures should be put in place to help customers make informed choices about their purchases.”
Direct Line Group said that where a customer has indicated they want to pay monthly, it would like to see premiums raked in order of monthly payments, rather than the cheapest annual premium.
It said: “This would reduce the instances where customers think they are getting the cheapest deal because they have selected the policy with the lowest annual premium when in fact they could be paying considerably less if premiums were ranked in order of monthly payments.
“If price comparison sites ranked premiums by the total of monthly payments, insurers would not be rewarded for maximising the gap between the premium displayed and the amount the customer actually pays.”
The company added: “We will continue to work alongside the FCA to support their initiatives and hope that they take our concerns in to consideration.”