Advised sales are the way forward

Following news that the Financial Services Authority has written to 19 firms operating insurance price comparison websites about the fair treatment of consumers, specialist general insurance provider Assurant Intermediary says that advised sales represent better value for consumers seeking protection insurance.

Sales and marketing director, Kevin Paterson, comments:

“I’ve long held the view that consumers don’t understand how price comparison sites really work and so it comes as no surprise that the FSA has raised its concerns.

“When it comes to buying protection insurance, it is particularly important that a consumer gets proper advice from a knowledgeable professional.

"I was especially concerned to read reports that in its letter, the FSA had to make it clear that these sites should take responsibility for checking eligibility or disclosure rather than putting the onus on the customer.

"In light of all the negative publicity that the payment protection market has attracted concerning past instances of mis-selling, some consumers may well have chosen to turn to price comparison sites.

"This may well cost them dear as they may have bought a policy that isn’t really suited to them and only find this out when it comes to making a claim.”

In January this year, Assurant Intermediary brought to market the first accident, sickness and unemployment products to be underwritten at the point of sale. Home Protector and Income Protector have been designed to be sold on an advised basis through professional advisers.

Paterson concludes:

“Our approach of underwriting protection at the point of sale ensures that consumers receive a quote based on their individual risk profile as well as their individual demands and needs.

"This is another concern raised by the FSA about aggregators, as consumers actually receive an illustrative quote based on a set of generic criteria. In my view, selling protection – whether ASU or critical illness or permanent health insurance – has to be through intermediaries who are best placed to advise their customers and ensure they get a policy that they can have confidence in.”