Online preferential insurance in UK to be banned

The UK Competition Authority is to ban the practice of insurance companies providing preferential lower prices through comparison websites than a customer would get by going directly to a company or broker, writes Brian Byrne.

Almost half of new policies issued in the UK are done through such comparison sites, but there's a concern that the cheaper offers often don't meet the actual needs of buyers.

But according to a survey carried out by independent motor insurance broker Insurance Revolution, only 6 percent of respondents said a properly tailored plan was their priority. More than four in ten said cashback incentives were more important in their choice.

The impending ban might help to level the playing pitch for the insurance industry in the UK.