Come on regulators the time to deal with aggregators is now.
Paul Thompson, CEO Cavere Group, writes a regular column in Mortgage Introducer Magazine.
Compare the Market was recently the subject of an enquiry which found them to be denying better prices to consumers by preventing insurers from offering deals on rival platforms. Another example that aggregators are working against insurers.
Margins are getting thinner, insurers are being forced to offset the introductory offers by charging existing customers more, and only those with the deepest pockets are winning. I urge regulators to intervene and put a stop to this race for the bottom – either put an end to introductory offers, cap like-for-like premium increments at renewal, or make new business and renewal pricing the same.
Insurers don’t want these practices and neither do consumers. Consumers are encouraged to switch every year, but it’s time consuming and tedious, and it’s not necessarily saving them money.
A ban on this activity would be good news for brokers. When insurers have their hands untied there’ll be less fluctuation in premiums, less focus on price, and a greater ability to deliver solutions based on service, quality and value. Value is ultimately the only price that counts.