FCA chief’s remark comes after July research pointing to £1,500 variation in cheapest car quotes
FCA chief Martin Wheatley has ‘hinted’ that millions of people are being manipulated by comparison sites.
During a meeting with the Transport Select Committee, the financial regulator boss (pictured) said he was “very wary of the comparison sites because they are all gamed”.
The off-the-cuff remark was used by Wheatley when he was talking about annuity best buy tables, This is Money reports.
However he added that if the sites were used in the right way they could be useful.
And later on, an FCA spokesman tried to play down Wheatley’s remark, saying it was just a ‘personal view’.
Ranking tactics
Campaigners and critics have expressed concerns over insurers being able to climb site rankings on price, while adding in exclusions and excesses elsewhere.
According to research by consumer group Which? in July, there was as much as a £1,500 variation in the cheapest car insurance quote, after entering identical fictional motorist details into 10 websites.
It is estimated that four in five people use comparison sites, which generate about £1bn a year.
A handful of these sites – or aggregators – have become well known names in recent years, such as Confused, owned by Admiral, Comparethemarket, owned by BGL, and GoCompare, owned by eSure.
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