The Comparison Consortium and the ABI announced that they’re forming a partnership to develop a code of conduct for the comparison industry. Could this be the final act before the high powers stomp in with external regulation? Some say this is a recipe for disaster …like all previous attempts and self-regulation. "One team of willy waving egos and another team of red tape specialists" as it was put to me recently. But is this partnership between the Comparison Consortium and the ABI going to be a successful one …it depends what your measure of success is, surely!
The motivation for the Comparison Consortium is certainly there. Self regulation is always the preferred option over Government interference. But if that’s the case, how come the comparison websites haven’t managed to make it work before? Professors, CEOs and all manor of "experts" have all failed before, mainly due to the power struggle and maligned objectives of the comparison websites.
The ABI have an interest because if something major goes wrong on their watch, they’ll have a huge PR problem on their hands …and it’s not as though the FSA are likely to wade in and save the day – they’ve got enough on their plate. It’s also worth mentioning that talk of a new partnership with the Comparison Consortium arose around the time when David Cameron first put the feelers out about a new policy (with assumed power) to scrap the FSA and form an investment/fund/bank regulatory body and a separate Consumer Protection Agency (which this would fall under).
So could this partnership between the Comparison Consortium and the ABI be a preventative measure before the Tories come wading in with Government regulation? In which case, could this Comparison Consortium simply be a front? Or is that line of thinking too cynical? Could this actually be a valiant attempt to tidy up an industry in its infant stages before it lays down the habits of a lifetime?
That’s all up for you guys to discuss and comment below. As for my own personal opinion, knowing the people involved, there’s more to this than consumer protection. Knowing the people involved, there’s not a huge chance of the customer coming out on top from anything the Consortium comes up with. The likely outcome is a lot of PR (and I mean a lot!), a lot of guidelines and effort put into making it work …resulting in a lot of the comparison companies breaking their own guidelines because they can make a quick and easy buck from simple competitive advantages over the other comparison websites. These leopards won’t change their spots – they’ll stretch every data protection law, every advertising guideline and every piece of regulation if it makes them a single penny more on each customer than their comparison competitors.
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{ 8 comments… read them below or add one }
Ernest, I guess the latest press release on this subject is not reaching you all the way over there in Norwich. I always thought that you guys at Adrian Flux had your fingers firmly on the pulse, I am now beginning to think that they have been shoved in your………eyes
The ABI are not linking up with the Comparison Consortium but do offer their support. You will of course realise like most of us in this industry that there is much more to price comparison than Insurance! A simple cursory glance at the Comparisonconsortium website will tell you this.
If you haven’t poked out your own eyes, then your cynicism seems to be clouding your vision and this is a case of the insiders view being much worse than the outsiders!
Always happy to chat if you want to pick the phone.
@Mason:
“The ABI are not linking up with the Comparison Consortium but do offer their support.”
Please read the post very careful before giving us a reflex reaction. We’ve inferred nothing else to the relationship. The words “team up with” feature in your own press release and that’s as far as we have understood and commented: http://www.finextra.com/fullpr.asp?id=26107
We’ve also noted an interesting turn of phrase in the use of “Money Extra’s” Comparison Consortium!!
“You will of course realise like most of us in this industry that there is much more to price comparison than Insurance!”
Again, please re-read the post above. We’ve not inferred that this is solely an insurance issue. We know that data protection and consumer interests are being abused on a much wider scale.
“A simple cursory glance at the Comparisonconsortium website will tell you this.”
From another Mason comment: Do you ever use google?
I tried to find your website with one of them there search engine things but with my limited knowledge of Google, all I found was this rather revealing blog!
While the ABI supports the principle of this initiative to improve the customer experience of comparison web sites, the proof of the pudding will be in the eating. It’s not clear which comparison sites are actually signed up to the Code of Conduct (which contrary to reports, including this blog, was not developed in partnership with the ABI), and in any case the Code doesn’t appear to say anything beyond what is already required of insurance comparison sites by existing FSA regulation. The ABI has set up a Working Group with insurers, brokers and representatives of the major comparison web sites, which we believe will provide a much better way of improving the customer experience of insurance comparison sites and of the insurance industry in general.
Its about time, comparison websites don’t always have the consumer in mind, to them it’s about money, which is understandable. The question I would like to know is “with the introduction of Comparison Consortium and the ABI working together to standardise and regulate the comparison industry, will Directline change its stance on comparison websites?”
@Mason
We’ve applied to be a member – let’s see if we can get an insiders view(!)
@Jonathon French, you raise a very good point there. None of us, on the “outside” at least (if we are), know who’s being consulted on the guidelines being laid down by the Comparison Consortium beyond the committee members.
One of the most interesting members of the Committee (having eventually found your website @Mason), is that of Thomas Adalbert of Beat That Quote. We’re told that BTQ were laughed out of the room at previous comparison website/guideline setting attempts. Through the jostling for ego hierarchy amongst the comparison websites, the one thing that united the whole room was their commonly held point of view of BTQ and also those of intrusive spam …oh, and look, Call Connection are on the committee too.
How can customers expect to be protected when the committee has a vested interest in spamming and misleading? *that’s an honest question, which could perhaps be interpreted as being more aggressive than it is intended*
@Jonathon French, I would also like to back you on your comment that the guidelines will need to go further than what is currently laid down by the FSA …and actually adhered to.
I wonder how long it will take before the mistake of letting Defaqto in on the act will become apparent to the outsiders of this committee?
Why do confused just seem to feature welsh customers in their tv & radio ads?
I work in the insurance industry and would love to share my views but on a private basis !!!!