Allianz has come out strongly against the suggestion that insurers should be compelled to co-operate with comparison websites.

The Financial System Inquiry’s interim report says home and motor insurers’ reluctance to share information with aggregators “may reduce price competition”.

It suggests one option is to “ensure aggregators are able to use automated processes to seek quotes from general insurance websites”.

In its submission on the report, Allianz argues there is no justification for such intervention, which would rob insurers of precious pricing research and data. It would also be highly impractical, requiring access to insurers’ IT systems.

Allianz says comparison sites encourage an excessive focus on price, which can result in customers “ignoring critical policy differences”.

Aggregators may include some product information in addition to price, but the insurer says it has no faith in their ability to do so in an informed fashion.

Allianz says comparison sites can charge commissions worth up to 100% of a policy’s first-year premium, and forcing insurers to take on such high acquisition costs “would ultimately result in upward pressure on premiums”.

GM Corporate Affairs Nicholas Scofield told insuranceNEWS.com.au Allianz wants to highlight the “dangerously silly” idea.

“On what basis does a government decide that it is going to force a marriage between these businesses?” he said. “It would all be for the commercial benefit of one party.”