The British Insurance Brokers’ Association (BIBA) has welcomed the Financial Services Authority’s (FSA) move to regulate general insurance comparator sites, saying it’s a vital step towards customer protection.

In a formal submission to the FSA’s push for guidance measures to be introduced to all aggregators, the association says one of the key issues is that comparators must be recognised as more than just introducers, especially as they often arrange and advise customers.

The FSA proposed regulatory guidelines highlight the need for these sites to take responsibility for checking eligibility or disclosure of products rather than putting the onus on customers.

It also suggests comparators need to think carefully about whether they are introducing, arranging or even advising customers on purchasing a contract of insurance.

However, until now comparator sites have had few regulatory restrictions as the FSA rules were introduced before they developed.

BIBA Head of Corporate Affairs Graeme Trudgill says the association will co-operate to help bring in the changes.

“These sites have primary involvement in the sale process of personal lines insurance and it is very important that they have appropriate regulatory guidelines in place,” he said.

BIBA also believes these guidelines will give customers greater clarity to understand the products and provide less chance for them to purchase unsuitable products.