Insurance Ireland welcomes CBI regulation on Differential Pricing
Issued March 15 2022. Today, the Central Bank of Ireland (CBI) published its regulation on Differential Pricing for home and motor insurance in Ireland. Insurance Ireland supports the approach taken by the CBI. “It is important for consumers and the competition in the Irish market that insurers continue to deliver fair consumer outcomes through innovative products and services. The new regulation supports this objective.” Insurance Ireland CEO, Moyagh Murdock, said.
The CBI regulation includes changes to renewal pricing for consumers who stay with an insurer for over two years. The new regulation also includes provisions on the transparency of automatic renewals to improve consumer awareness for these processes. The approach which the CBI has taken is sensible as it does not harm pro-competition practices, like discounts for new customers or risks that consumers end up without insurance cover. The new regulation applies from 1st July 2022 on.
The new regulation presents a reasonable and pragmatic approach. Nonetheless, it will mean considerable efforts for insurers and external service providers to implement the new regulations in a short time. Insurers will respond to this challenge and ensure that the quality of the services which insurers offer their customers remains at its high level and that positive outcomes for consumers are ensured.
Consumers seeking new insurance policies, or consider changing or renewing existing policies can visit www.understandinginsurance.ie for more information.