Tuesday, November 26, 2013

Insurance price comparison website in Singapore

If you have been following Monetary Authority of Singapore's Financial Advisory Industry Review (FAIR) initiatives to lift insurance industry standards, you will know that one of the initiatives is a web aggregator to enhance comparability amongst life insurance products.

So I guess the question is, how effective will that be?

While it will be easier to compare products, it is not all positive.

For example, recently the Financial Conduct Authority (FCA) in the UK has begun a thematic review into insurance price comparison websites (PCWs).

According to Insurance Age, although the regulator maintained that PCWs are a "valuable tool for shopping around", it warned that consumers may not be receiving the best deal if they "focus solely on price" rather than insurance cover.

The review will entail 14 PCWs, some 90% of the market, as well as several insurance providers. The FCA will also look to speak with trade bodies, consumer groups and other regulators.
FCA director of supervision, Clive Adamson, said: "We've all used a price comparison website so we know how simple they make buying motor, travel or home insurance. We don't want to lose that convenience, but we do need to ask the question, 'does cheapest equal best?'
"We want to get to a place where consumers that use these sites buy with the confidence knowing that they have all the relevant facts."

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