Suncorp has again voiced objections against expanding the use of comparison websites in the Australian insurance sector, saying that aggregators deliver “questionable consumer outcomes”.

“Suncorp does not support government intervention in the operation of a well-functioning and competitive market,” the insurer says in a submission on the Financial System Inquiry’s (FSI) interim report, which flagged greater use of aggregators.

“Suncorp is concerned about any proposal to mandate a commercial relationship between insurance companies and aggregators.”

Suncorp, IAG and other insurers refuse to allow their products to be featured on comparison sites and do not provide data.

All current commercial insurance aggregators are middlemen charging commissions and fees, which are passed on to consumers, Suncorp says. “Insurance companies should not be placed in a position where they are compelled to pay for services that deliver questionable consumer outcomes…”

The FSI’s interim report says that where insurance sector competition is raised, the main issue is aggregator access to information.

But Suncorp says Australian consumers have already made a clear choice in personal insurance by moving away from the aggregated broker model to a cheaper direct purchase model.

Suncorp says the increased use of aggregators will not increase price competition, because that has not happened in the UK in sectors such as motor insurance.

A recent review by the UK Financial Conduct Authority found that product information is not presented in a clear and consistent way on comparison sites, increasing the risk that consumers may buy products without understanding the level of cover, excess levels, exclusions and limitations.

Consumers focus on price when using aggregators and don’t discover gaps in their coverage until they make a claim, the UK review found.

Suncorp says the Australian product disclosure regime has not proven to be agile enough to allow insurers to interact with customers in the most effective ways, and that it should reflect the needs of consumers for different classes of products. “For instance, a general insurance product is very different to a superannuation fund or a mortgage.”

Calling for the general insurance industry to continue to be governed by distinct policy and regulatory settings on disclosure, such as the Insurance Contracts Act, the insurer says proposals before the inquiry which seek to create more layers of disclosure could complicate the system.