Defaqto has changed its ratings on some private medical insurance (PMI) products and more are expected after it received stinging criticism from intermediaries.
The disagreement was triggered last month by Defaqto's first foray into the PMI arena with its Star Ratings system.
However, the rankings were swiftly criticised by the Association of Medical Insurance Intermediaries (Amii) which branded them ‘highly dangerous and not in the best interest of customers'.
This prompted a negotiation between the two parties which has resulted in the reclassification of some products.
COVER now understands that two PMI products have been re-categorised and that further changes are expected in the future.
Andrew Tripp, chairman of Amii, told COVER he was "absolutely gobsmacked and astounded" when he first saw the ratings.
"There is an ongoing discussion and I think that organisation has been wholly and utterly irresponsible in trying to apply star ratings," he said.
"It's clear that whoever has been writing these reports has absolutely no understanding whatsoever of the PMI sector, it's riddled with inconsistencies."
Ben Heffer, insight analyst for life and protection at Defaqto, said the Star Ratings were based on a stringent and robust methodology and that the business sought to involve the industry in the rating process.
"As such, we endeavour to have a close relationship with most trade bodies and professional bodies to ensure our data collection and ratings criteria are dynamically managed.
"We have engaged with the Amii to discuss their views and will continue to do so to ensure that our PMI Star Ratings remain robust, as well as relevant and useful to advisers and, ultimately, their clients," he said.
