iSelect has defended its business model after insurance comparators came under fire from industry heavyweights who refuse to work with them.

News Corp, which recently launched its latest home and motor cover campaign with One Big Switch, has set up a petition calling for a government-run comparison website, which is backed by independent senator Nick Xenophon.

The Insurance Council of Australia was quick to attack the idea, arguing such websites focus purely on price, to the detriment of consumer needs.

However, iSelect says comparing prices is only part of its process, and it speaks to most clients directly.

It has an Australian financial services licence, enabling it to give advice to consumers, and says it is better described as “a digitally enabled broker”.

CEO Scott Wilson told insuranceNEWS.com.au customers would benefit from increased industry participation in comparison sites.

“Customers have long turned to brokers to help them find other complex financial products such as home loans, health and life insurance, so why shouldn’t customers benefit from expert advice when it comes to general insurance products?

“Car and home insurance policies are complex financial products. The fact they are difficult to understand means many customers end up making a decision based purely on price, and as a result may not have the right level of cover.

“Of course price is always going to be part of the conversation, but it’s important that customers don’t just focus on premium cost.

“Too often a cheaper policy can end up costing more in the long run.”

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