Brokers Ireland Welcomes Move to Ban Differential Pricing
Tue Jan 19 2021
Friday 15th January, 2021
Brokers Ireland said today that this week’s introduction into the Dáil of the Insurance (Restriction on Differential Pricing and Profiling) Bill 2021 marks a step in the right direction to address pricing models in the home and motor insurance markets that damage consumers.
The Sinn Féin Bill was introduced on Thursday and unopposed by Minister for Enterprise, Trade and Employment, Leo Varadkar on behalf of the Government
Cathie Shannon, Director of General Insurance at Brokers Ireland, which represents 1,225 Broker firms, said: “We welcome any move to tackle the problem of some consumers being charged higher prices than others with a similar risk profile. This most adversely impacts more vulnerable consumers and older people. All consumers deserve to be treated fairly when purchasing insurance. The recent Interim Report from the Central Bank of Ireland on the issue showed very clear evidence in the data collected that consumers are being punished by insurance companies for their loyalty.”
“The report found that on average, the longer a customer stays with an insurer, the higher the amount they pay in excess of that required to cover the expected cost of the policy.”
The practice of charging different premiums for new and renewal business is due to be banned in the UK later this year.
Ms Shannon said: “It is absolutely essential that consumers and businesses should be treated fairly, equally and in a transparent manner, and not be harmed as a result of pricing models adopted by insurers. Motor and home insurances are not luxury products.”
Further information: Cathie Shannon, Director of General Insurance, Brokers Ireland Tel: 086-7953848
