The Australian Securities and Investments Commission (ASIC) is considering holding a review into comparison websites.

ASIC Commissioner Peter Kell told the Insurance Council of Australia’s Regulatory Update conference in Sydney last week that ASIC is concerned about how websites, including insurance comparison sites, manage conflicts of interest. A review will also examine quality and disclosure.

Last year’s ANZ financial literacy survey showed 36% of people compare insurance using online sites.

Mr Kell said the sites can facilitate competition and assist consumer choice, but ASIC is concerned “where such websites inadequately manage conflicts of interest – for instance, if there is a relationship between a particular insurer and the website, and this is not adequately disclosed to consumers”.

Mr Kell said the basis of comparison should be disclosed clearly, particularly when the comparison does not include a full range of available products.

“We will also review the basis for any awards or ratings for certain products by the site; and how the website discloses any links to the providers of the products, including the payment of commissions and other payments.”

Given consumers’ increasing reliance on such websites, he said is it is important the sites comply with their legal obligations not to make false or misleading statements, or engage in misleading or deceptive conduct.