Need to know
- Unlike commercial comparison sites, we don’t have a financial relationship with the insurance industry or individual insurance companies
- They take commissions or other payments from the insurers whose products they recommend, and we don’t
- It means we’re free from the potential and actual bias that arises from such relationships
Along with our lab-tested product reviews, CHOICE has a long and proud history of reviewing – and recommending – insurance products.
Why proud? Because we do things differently to commercial comparison sites such as Compare the Market, Finder, iSelect, Compare Insurance, Choosi, and Canstar.
We're different because, unlike the above-mentioned businesses, we don't have a financial relationship with the insurance industry or individual insurance companies. They take commissions or other payments from the insurers whose products they recommend, and we don't. That means we're free from the potential and actual bias that arises from such relationships.
Conflict of interest
When you receive a commission or other form of payment from the companies whose products you recommend without an unbiased basis for that recommendation, we think there's a problem.
By contrast, the criteria for our recommendations are strictly objective. We highlight the best value products for a range of scenarios based on our expert analysis – with no financial motive at work.
When you receive a commission from the companies whose products you recommend... we think there's a problem
None of the commercial comparison sites can legitimately make this claim. In fact, some comparison sites are actually owned by or affiliated with the insurance companies whose products they recommend – a blatant conflict of interest.
In our view, commercial insurance comparison sites that have financial relationships with insurance companies are effectively an extension of the respective insurance company's sales arm.
It's no secret that insurance companies have a long history of incentivising people and businesses to sell their products. It's how their sales models generally work.
Commercial sites acting as brokers for insurance companies
The business models of commercial comparison sites such as Compare the Market and Finder vary, but they can include some of the following.
Commissions
The site may be paid an upfront commission as well as ongoing commissions by the insurance company when a customer buys a policy through the respective commercial comparison site.
This can mean that the products that pay the highest commissions are promoted over products that may better suit your circumstances and cost less. In this scenario, the comparison site is basically acting as a broker for the insurance company, not an independent reviewing platform prioritising your best interests (like CHOICE).
Referral fees
Commercial comparison sites may receive referral fees from the insurance companies whose products you click on, and then an acquisition fee if you end up buying the insurance product.
Once again, it means comparison sites may favour products in search results that pay them the highest fees, instead of showing you the products that are objectively the best.
Fee-for-service
Other commercial comparison sites may get paid a flat fee-for-service from the insurance company if you choose one of their products, based on a percentage of the premium you pay.
The insurance company has the comparison site in its back pocket, or perhaps the other way around.
CHOICE insurance recommendations: Commission-free – now and forever
For the record, we don't do any of the things described above, and we never have. It's not how we operate.
Aside from the inherent conflict of interest in these commission-driven models, the extra money that goes to the comparison sites as a reward for being an effective sales platform gets wrapped into the premiums that policyholders pay. In short, commissions increase your premium costs.
We're not-for-profit and completely independent from the insurance industry. We don't take their money
That's all well and good, you're thinking, but what can CHOICE offer me that commercial insurance comparison sites can't?
- A market-wide review of insurance products. Commercial comparison sites often limit the companies and products they review to those they have financial relationships with.
- Totally objective and unbiased insurance reviews and recommendations – the commercial sites can't make this claim.
- A team of insurance experts whose sole purpose is to help you find the best possible insurance product when it comes to both value-for-money and the right features, with no profit motive involved – full stop.
After all, we're not-for-profit and completely independent from the insurance industry. We don't take their money. Our mission is to act in your best interests, not ours.
We're on your side
For more than 60 years, we've been making a difference for Australian consumers. In that time, we've never taken ads or sponsorship.
Instead we're funded by members who value expert reviews and independent product testing.
With no self-interest behind our advice, you don't just buy smarter, you get the answers that you need.
You know without hesitation what's safe for you and your family.
And you'll never be alone when something goes wrong or a business treats you unfairly.
Learn more about CHOICE membership today
Stock images: Getty, unless otherwise stated.
