Paymentshield CEO Tim Johnson has argued that customers need educating about Defaqto ratings.

This comes as its new home insurance product has received a five star rating by Defaqto.

According to a recent Paymentshield survey, as many as 81% are not clear on the importance of Defaqto star rating for financial products.

Johnson 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. 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 changes to its latest home insurance product, with increase in cover for contents, buildings and addition of student belongings cover.