Research commissioned by Defaqto found that 96% of people believe it is important to know what features a financial product offers as well as the price – and 85% believe that independent ratings are an important factor when choosing a financial product.
At the same time, however, 47% do not always understand the features of financial products.
Tim Johnson, chief executive of Paymentshield, said: “Defaqto ratings are still not being considered by consumers when choosing insurance, which is a real concern.
“Many people aren’t aware of the differences between home insurance products and that the cheaper option is not always the better option.
"Defaqto ratings are a clear representation of a product and enable customers to find the best quality cover as well as the most comprehensive protection.
“In light of our product enhancements, we hope to see brokers highlighting to their customers the importance of these ratings when choosing a policy.”
In December Paymentshield announced a number of product enhancements to its latest home insurance product, with increase in cover for contents, buildings and addition of student belongings cover.