Price comparison sites: Watchdogs must be ready to bite after worrying Which? report

The consumer group said the information on 60 per cent of the motor insurance policies it looked at was inaccurate

Not so cute: A Which? study has questioned the information on price comparison websites like this one

What character might you use to advertise ‘CompareThePenalty.com’, the website that finds you the most badass regulator to complain about dodgy information on a price comparison site?

A dragon? How about a demon? Sauron? No, no, I’ve got it! Thanos! Although Disney would probably demand a fairly hefty rights fee for the use of the uber baddie from Avengers: Infinity War.

One thing is for sure, the cutesy characters favoured by the price comparison industry won’t do the trick.

If a report by Which? is to be believed, there’s nothing very cute about the way the businesses in the sector have been working.

Having cross checked the motor policy descriptions for 21 insurance brands on four popular price comparison sites against the information provided by insurers it drew some troubling conclusions.

There was, it said, at least one discrepancy in six out of every ten of the policies its researchers looked at. Some of them were rather significant, ranging from the level of cover being offered to whether or not a courtesy car would be available in the event of a prang.

Compare the cock up anyone?

When the sites work they are an invaluable tool for the consumer, and can inject some competitive spice into markets in sore need of it. That goes way beyond car insurance.

Millions of consumers have benefitted from their listings of credit cards, personal loans, and especially energy deals, where they’ve helped to chip away at the dominance of the cozy oligarchy of the six biggest firms.

It would be a great pity were that process to come to an end as a result of a collapse in confidence.

But can we really be confident about these sites in the wake of what Which? found?

This is not, after all, the first time problems have emerged.

Way back in 2014, the Financial Conduct Authority fired a shot across the industry’s bows, opining that some of those operating in the general insurance sector “are failing to meet consumers expectations of them and, in some cases, regulatory standards”.

Shape up, was the message. But it didn’t happen, because next up was the Competition & Markets Authority. It wrapped up an investigation last year that found the sector doesn’t always work in the interests of consumers. A disciplinary probe, reportedly focussed on CompareTheMarket, is ongoing.

For the record, confused.com and MoneySuperMarket both issued statements alongside the Which? study amounting to saying that they keep a close watch on the information on their sites, and work quickly to resolve any issues.

Two regulatory reports, and now this, however, does rather suggest that they need to raise their game.

If they don’t, one or the other of the watchdogs overseeing them must be prepared to bite. They've been barking for long enough.

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