Research undertaken by Rice Warner has revealed that life insurance price comparison websites are not providing adequate advice to consumers, often focussing on price over features.
The comparison sites received similar commissions, but there was a deficit on information and advice regarding certain product features, the needs of consumers, and claims, particularly in comparison to the information provided by a financial adviser.
Some sites offered a comparison of product features, but the differentiation and focus was on price, with little information on why the price was different (if applicable) when it came to features, and no information on claims processes.
Rice Warner's report said, 'The inadequate link between price and product features is likely to result in consumers overlooking what is being offered for the price they pay.'
Additionally, the report said the lack of comparison often excluded direct insurance policies that didn't fit into the standard model, plus insurance offered within superannuation. This left consumers without adequate information to make a proper decision about insurance, believing that only price mattered.