The Money Stop

Insurance giant Norwich Union has recently announced that it is pulling out of placing deals on price comparison sites. Many insurance providers allow their deals and packages to be viewed on one of a range of price comparison sites that have come into play over the past couple of years. A large number of consumers use these sites to see at a glance whether they can cut the cost of cover or to find the most competitive insurance deals.

However, one insurance giant, Direct Line, has never placed its products on price comparison sites, and now Norwich Union, another of the nation’s leading insurance companies, has decided to follow suit. An official from Norwich Union explained why the insurance firm had decided that it no longer wanted to be a part of the comparison website revolution.

He stated: ‘We don’t want to pick a fight with the comparison sites, but we think direct should mean direct. As a brand with 200 years behind it, we think that customers trust us.’

An official from one major price comparison site, uswitch.com, described the move by Norwich Union as disappointing. However, he went on to state: ‘Obviously we want many insurers as possible on the site. even without Norwich Union, we can use our buying power to lay on some great deals for customers.’

Officials from Norwich Union have said that they want consumers to look at the benefits of features of its cover rather than just focusing on prices.

Some officials have described price comparison sites as being misleading and confusing.

One official recently said: ‘With such an array of financial products to choose from, it can be tempting to turn to a price comparison site to do the legwork for you. But you might be very confused to find that different sites can give you vastly different quotes and often don’t give enough information for you to make an informed choice. You need to use two or three comparison sites and check directly with providers to get the best quote. And remember that cheapest isn’t always best. It’s a false economy if you don’t get enough cover for your needs or have to pay a huge excess if you claim.’

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