The National Insurance Brokers Association (NIBA) has criticised consumer group One Big Switch for its campaign to hammer down prices on home and contents policies.

One Big Switch negotiated a 13% discount with Coles Insurance for its members after about 70,000 people joined the promotion.

In conjunction with other discounts, customers could save up to 40%.

CEO David Issa, a former CEO personal insurance at IAG, told insuranceNEWS.com.au the campaign is about improving affordability and tackling underinsurance – key issues the industry itself has highlighted.

But NIBA CEO Dallas Booth says the campaign’s focus on price is dangerous and could leave consumers exposed.

“People should be thinking carefully about their cover rather than chasing a cheap premium,” he said. “The outcome won’t be realised until they need to make a claim.”

One Big Switch says it does not need an Australian financial services licence because it operates as a referrer and does not give recommendations or advice.

But Mr Booth fears members of the public will not understand this and could assume the group is part of the formal process.

“One Big Switch is a real worry for us. We are concerned and we have made our concerns known to the Australian Securities and Investments Commission.”

News Corp supported the promotion, and both it and One Big Switch receive a commission for every person who takes out a policy.

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