FSA finds significant improvement in home and motor insurance press advertising
22nd May 2007The Financial Services Authority (FSA) today announced the outcome of its review of the use of savings claims in general insurance press advertising, which has found a significant improvement in standards since it raised concerns in January 2007.
The review of all home and motor insurance advertising appearing in the national press over a ten day period in April 2007 found that 94% of advertisements issued by 28 firms fairly and accurately described what savings consumers would be able to achieve, while 6% contained misleading savings claims.
This follows the financial regulator's challenge to firms to improve standards after the FSA's January review revealed that 45% of home and motor insurance press advertising made misleading savings claims.
Insurance advertisements can be misleading if they give the impression that the majority of consumers are eligible for the advertised savings when this is not in fact the case. This means that consumers can be induced into contacting a firm on a misleading basis.
Vernon Everitt, the FSA's Director of Retail Themes, said:
"We said in January that firms needed to shape up and fast, so this progress is good to see. What really matters now is that standards remain consistently high across print, broadcast and other advertising and we will be watching to make sure that they do."
"In the meantime, consumers should always look beyond headline savings and other claims to ensure that the cover on offer is right for them. The jargon-free, impartial information about insurance on our moneymadeclear website will help people get the right deal for them."
The FSA has told the small number of firms who failed to produce advertisements of the required standard to take immediate steps to deal with its concerns.
Consumers can get help choosing insurance products by using the range of free, impartial information, including an insurance guide - Are you covered? - which is available on the FSA's consumer website or by calling the FSA Consumer Helpline on 0845 606 1234.
