The good practice guidance, called "Ensuring Positive Customer Experiences of Buying Insurance Online", sets out high-level standards for insurance comparison websites, insurers and brokers selling general insurance, such as motor and home insurance, online. The guidance is in response to concerns that consumers have not always understood the terms of their insurance cover when buying policies online. In 2008, the Financial Services Authority carried out a review of insurance comparison websites to determine the extent to which such websites treat customers fairly and, in particular, whether the information which they provide to consumers is clear, fair and not misleading. The review found examples of good and poor practice. Please click here to view our previous blog on this topic. The good practice guidance aims to ensure that consumers buying insurance over the internet can better identify the most suitable policy for their needs.

The guidance has been developed by the Association of British Insurers (ABI), the British Insurers Brokers Association, Which? and various leading insurance comparison websites. Key issues covered by the guidance include:

1. Policy information

2. Add-ons

3. Excess levels

4. Referrals

5. Guaranteed prices

6. Accurate data

7. Total price disclosure

While the guidance is voluntary, the ABI will carry out regular reviews to establish how widely it is being implemented and to identify any other issues that may need to be incorporated into the guidance.

Please click here to view the guidance.