It’s an unfair comparison

Site centre of price probe

PRICE comparison website Comparethemarket.com is at the centre of a probe into claims it hiked the cost of home insurance.

The investigation by watchdog the Competition and Markets Authority follows a year-long study into how shoppers use such sites.

Comparethemarket, which features meerkat characters Aleksandr and Sergei in its ad campaign, faces allegations it set up deals with insurers which may have inflated the cost of policies.

The so-called “most favoured nation clauses” result in an exclusive contract between an insurance company and the price comparison website where it is agreed the firm will not offer a better deal to a rival site.

But the CMA fears consumers could end up paying higher home insurance prices as a result. Its report found most consumers had used a price comparison site at least once, and nine in 10 were “fairly satisfied” with the service provided. But CMA chief executive Andrea Coscelli said there was room for improvement. While it did not name Comparethemarket as the firm being probed, the comparison site said in a statement: “Comparethemarket.com operates some simple contractual arrangements with home insurers to ensure that our customers always get the lowest available price. “We welcome the opportunity to discuss this further with the CMA.” Consumer watchdog Which? said: “All regulators must ensure businesses abide by the rules and customers get good outcomes, or take action.”