New research by brand consultancy Corke Wallis has cast further doubt on the future of price comparison websites (PCWs) as a dominant form of buying insurance in the UK.
We have made no secret of our views of PCWs, as Gavin Sewell, honcho CEO explains:
“The lack of transparency, questionable contractual practices, less-than-clear pricing and dubious customer-centricity of price comparison websites doesn’t sit comfortably with us, and we believe that consumers deserve a much better way of buying insurance that is fully centred around them. Equally, it’s time that insurers benefited from an equitable platform through which to distribute their products.”
And it seems that consumers are starting to question the role of PCWs themselves.
Headlines from the Corke Wallis research shows that the majority of consumers are unhappy with the costs that PCWs add into car insurance. When asked “Do you think that price comparison companies are making too much money?” a whopping 57% answered affirmatively.
Commentary from consumers on PCWs was equally damning, with quotes such as “Why do insurance companies charge less on comparison sites?” demonstrating that consumers are sick of the tricks being played by some PCWs to manipulate the market in their favour.
We recently wrote about the Competition and Markets Authority’s preliminary findings from their investigation into major PCW Compare the Market (see here) in relation to home insurance, where the CMA chief executive Andrea Coscelli said:
“Our investigation has provisionally found that Compare the Market has broken the law by preventing home insurers from offering lower prices elsewhere. This could result in people paying higher premiums than they need to.”
Consumers deserve better, and at honcho we are building a better way to buy insurance that is fully focused around consumers, is fully transparent and equitable and where there are no hidden commissions tucked away that the consumer ends up paying for.