Defaqto launches comparison tool for home insurance buyers

In a move that will revolutionise the way insurance products are purchased, Defaqto has announced that it has developed a website comparison tool that enables product features of competitive products to be compared against each other. Hiscox is the first insurer to place the tool on its website.

Known as Defaqto Compare!, this unique comparison tool works by comparing a defined range of features across the entire range of competitive products.

Developed to provide quick access to information that would otherwise be virtually impossible for consumers to assemble, the system is powered by Defaqto’s extensive database of insurance products. By concentrating exclusively on features, the comparison tool overcomes the current obsession with price as the principal means by which competitive products are evaluated. The tool works by being resident on an insurer’s website and visitors to the site can select from a dropdown list whichever product they want to compare with the host product.

Most of the dozen or so key features selected for comparison by the host insurer are drawn from Defaqto’s list of important criteria that are used to rank products in terms of star ratings. The first insurance area to be available is Buildings and Contents Home Insurance.

As the first insurer to adopt the comparison tool Hiscox has long championed the quality agenda for consumers, claiming standard insurance policies are letting many wealthier consumers down by providing inadequate cover for their needs and leaving them underinsured.

Kevin Kerridge, Head of Hiscox Direct said, “The insurance industry has been slow in keeping pace with people’s rapidly changing lifestyles. Many people have much greater disposable income for spending on personal possessions and are travelling to more exotic locations for work and pleasure. Which all means that it is vital that consumers understand fully the insurance product they are buying and the extent of the cover it offers.

“There has long been a need for a ‘quality aggregator’, giving consumers easy access to independent data so they can judge the quality of different insurance policies at a glance. A significant majority of policies for example offer no accidental damage cover or cover for items taken out of the home unless extra premiums are paid. Defaqto’s aggregator shows insurance buyers exactly what they are getting for their money.”

Kate Marsden, Marketing Director at Defaqto said, “ We believe that Defaqto Compare! represents a huge advance in the way consumers are able to compare financial products and we are delighted that Hiscox has recognised its potential and placed it on its website. This move will give Hiscox an independently verifiable means of demonstrating the quality of its products and will send out the message that all products are not the same and price is not the only differentiator”.

To view and test Defaqto Compare!, visit hiscoxonline.com.