Price-Focused Insurers Brave Reprimand From FSA

By Bowery, Joanna

The majority of UK insurance firmsare main tain ing their price- led advertising, despite the threat of a crackdown by the Financial Services Authority (FSA).

Last week the FSA warned that companies could face regulatory action unless they stop using savings claims that could be misleading. It stated: 'Insurance ads can he misleading if they give the impression that most consumers are eligible for such savings when only a few arc. They can also be unclear if the basis of the savings claim is not clearly set out.'

Elephant.co.uk is the only firm to have taken the advice. It is altering wording in its ads from 'Want to save 100 on your car insurance?' to 'Save up to 150'.

Esure, whose ads show customers describing how much they saved, is maintaining its price stance. 'We are compliant because we use real customers,' said a spokesman.

Barclays, which offers to heat insurance deals and pledges up to 100 off its prices it a rival quote is cheaper, is also standing by its work. 'We are already compliant and have an ongoing dialogue with the FSA to check that we are,' said a spokeswoman.

Elephant.co.uk: altered approach

Copyright Haymarket Business Publications Ltd. Jan 24, 2007

(c) 2007 Marketing. Provided by ProQuest Information and Learning. All rights Reserved.