The Financial Services Authority, the body responsible for regulating insurance providers in the UK, has announced that it will be investigating the operation of leading price comparison sites with a view to preparing new codes of conduct and guidelines as necessary.

This follows pressure from the insurance industry amid concerns that customers are making ill-informed choices based on cost alone, without adequate policy information.

Sites such as this one, by providing access directly to insurers, maximise the opportunity to make an informed choice, provide access to low cost insurers that sell directly to customers which are not checked by price comparison sites (eg Direct Line), and remove the potential conflict of interest due to policy choice determining commission for those who buy direct.

That the FSA has acknowledged a need to investigate represents official recognition that price comparison websites although fast and convenient, currently provide a 'black box' service where limited information is provided to the consumer before he or she selects their car insurance.

We will be introducing our own price comparison service in the spring of this year. It will be powered by the independent, genuine best price quotes provider, Seopa.