Insurance Ireland welcomes Central Bank’s report on differential pricing
- Insurance Ireland welcomes the Central Bank’s report, which is balanced and proportionate.
- The report finds that differential pricing benefits some consumers who are engaged and shop around for their insurance to obtain the best price for their needs. However, for other consumers, who do not engage in shopping around, the practice can bring costs.
- The Central Bank has issued proposals aimed at limiting the costs to these consumers.
- Overall, the Review underlines the importance for consumers of engaging with insurance providers and intermediaries to get the best deal and shopping around regularly, as consumers would with utilities such as telecoms/broadband or gas and electricity services.
- Insurance is a competitive marketplace so we would strongly encourage consumers to actively seek out the best price and product that meets their individual needs.
- Insurance Ireland will evaluate the CBI’s proposals and will engage constructively with the public consultation process and the CBI.
Issued 21st July 2021 Insurance Ireland welcomes the publication of the Central Bank of Ireland’s final report on the Review of Differential Pricing in the Private Car and Home Insurance Markets, which is balanced and proportionate. The findings highlight the importance of active consumer engagement and competition in the market which benefits consumers. The report acknowledges good practice which already exist in the market and outlines proposals to address the aspects which the CBI identified as a source for potential challenge for some consumers.
Moyagh Murdock, CEO of Insurance Ireland, said “The report finds that differential pricing benefits some consumers who are engaged and shop around for their insurance to obtain the best price for their needs. However, for other consumers, who do not actively engage in shopping around, the practice can bring costs. Our members remain fully committed to working with the Central Bank of Ireland, and Insurance Ireland will engage constructively in the public consultation process to ensure measures being put in place will work to the benefit of all consumers.
Our members recognise the importance of providing documentation and information that is meaningful and transparent for consumers engaging with their insurance providers, and this report underlines the importance of consumers shopping around regularly to ensure they get the best value, as consumers would with utilities such as telecoms/broadband or gas and electricity services. Insurance Ireland believes that it has an important role to play in this regard and we have recently launched a public awareness campaign designed to encourage consumers to shop around to get the best deal”