Insurance price comparison sites and health insurance

Your television and newspapers are increasingly full of adverts for insurance comparison sites. At present the emphasis is on car insurance but health insurance is on their radar.

 

You may be confused by the adverts that suggest that comparison sites are brokers, but that is not true.

 

An increasingly bitter war of words is raging in the media between some direct insurers and some comparison sites. Apoplectic actors, snide remarks, accusations of lying and much much more.

 

To older onlookers most of this is hilarious, not just because of the absurdity of some of the stances, but because it is all too familiar. When direct insurers first appeared on the scene, similar rows went on between established insurers and the new direct phone insurers. So it is deliciously ironic that the company handing out the stick 20 years ago, Direct Line, is now on the other end of criticism of being uncompetitive and out of date.

 

Behind the row is the bitter rivalry between Direct Line and its founder Peter Wood, who financed comparison site Gocompare.

 

We are not going to get drawn into the endless arguments between direct insurers and comparison sites, as it is boring and a waste of everybody’s time.

 

Comparison sites are here to stay, like the direct writers before them, they are going to go away, however loud Direct Line shouts. These comparison sites now account for one in four new motor policies.

 

The Royal Bank of Scotland Group owns Direct Line, Privilege, Churchill and Tesco Personal Finance. The bank has screamed loud and long about the comparison sites. Now Tesco Personal Finance, which RBS owns, has brought out its own comparison site, featuring quotations from all RBS brands except Direct Line

 

Everyone waits to see if the vitriolic campaign by Direct Line continues.

 

A comparison site is not a broker, but some are owned by brokers, and some are owned by insurers.

 

Online comparison sites started off purely comparing price, and have evolved into comparing some elements of the product too. This is where the arguments start as price is affected by what product features you compare and what adjustments you make to quotes to get lower prices. Every single one has a different selection of insurers and brokers, and a different way of comparing policies.

 

We compare product details.

We do not attempt the tricky task of comparing prices,

 

Comparing prices on private medical and dental and health cash products is much harder than on car insurance, as products are so different. A computer system for brokers has tried for a decade to get health insurers to allow it to compare prices, but most insurers refuse to take part on the basis that you are not comparing like with like

 

 

Owned by broker Budget

 

Confident Cover

For the over 50s, owned by travel and insurance group Saga

 

Owned by insurer Admiral

 

Backed but not owned by, insurer esure(owned by  Peter Wood)

 

Owned by a consortium of insurers and brokers

 

Money Expert

Independent -partnered with financial research company Defaqto

 

Independent

 

Owned by transport group SMG

 

Owned by Tesco  and RBS ( owners of Direct Line )

 

Owned by an American media group

 

 

Most have or plan to offer a wide range of insurance and banking products. So far, few have ventured into, or have announced plans to include, health insurance.

 

Confident Cover 

 

Links to specialist health intermediary Preferred Medical

 

No comparisons

Links direct to

 

 

Offers full comparison service from a wide range of insurers and 1200 policies

 

Links to Moneysupermarket