Recently, Defaqto visited the Free Spirit offices to give us an overview of the Star Ratings and the advantages it brings to consumers. What’s more, to celebrate our 5 Star Rating they brought in a cake too!
Who is Defaqto?
For those of you who may be thinking “who or what is Defaqto?” They are an independent financial information business and the leading experts in ratings for financial products. Their experts research, collect and continuously assess over 41,000 financial products, including general insurance and banking products, and rate them on a scale of 1 to 5 based on features and benefits that are relevant to consumers. These ratings are known as Star Ratings.
What does this actually mean to consumers?
As the leading experts in ratings, Defaqto’s Star Ratings provide consumers with an unbiased and transparent assessment of the products and policies in the market. They take the sometimes baffling variety of financial products in any one category – say travel insurance – and the occasionally overwhelming number of features that each product can offer – and distil all of this information into a single objective rating system.
Based on facts, not opinions, Defaqto gives all products a Star Rating of 1 to 5. This provides consumers with an accurate benchmark so that they can see, at a glance, how products and policies compare. This has the benefit of helping the consumer to see which product offers the best features from an independent and unbiased source.
Reassuringly, consumers consistently feel that it works. In a recent survey by Defaqto, 87% of consumers felt that Star Ratings would be useful to help them research financial products before purchase.
Often it is daunting for consumers to decide which product and cover level to choose. However, using Defaqto ratings as a guide gives customers the confidence and reassurance that they can quickly assess the quality of each product. They can then find the best product to fit their needs, or that their budget will allow.
Defaqto Star Ratings
Defaqto Star Ratings range from 1 to 5. They expertly rate products and policies, not providers and are based on facts, not opinions.
They also look at each level of cover as many products have more than one, to give customers a choice, depending on their individual needs. This means that a provider may carry a product with a 5 Star rating and also one with a 3 Star Rating. This helps consumers understand at a glance where a proposition sits in the market.
Additionally, 5 Star rated products must meet certain minimum criteria that Defaqto have identified as most important to consumers buying those products.
For each Travel Insurance product in the market, every type of cover it offers is evaluated against what is available in every other product and given a score. Then the overall score can be translated into a rating from one to five. A 5 Star Rating means that the product is at the top of the market with the core features and benefits that are most important to consumers.
So when a Free Spirit ‘Super Duper’ policy is purchased, with its 5 Star Defaqto rating, the customer can be sure that they have a product that provides one of the highest quality offerings in the market.
Now if that is not a reason to celebrate, we don’t know what is!
Click here to find out more about our Defaqto 5 Star rated ‘Super Duper’ level of cover.