Dual Pricing Investigation Important to Shed Light – Brokers Ireland
Thu Sep 10 2020
Press Release – 09th September 2020
Responding to the Central Bank report on the first phase of its Review of Differential Pricing in the Motor and Home Insurance Markets, Brokers Ireland said it is important in terms of transparency that the Regulator has now established that the majority of insurance firms do utilise differential pricing practices.
Cathie Shannon, Director of General Insurance at Brokers Ireland, which represents 1,225 Broker firms, said: “This process has some way to go yet before the Central Bank issues its final conclusions, including a decision as to whether or not dual pricing should be banned, as it has been in some international markets. However, most reasonable people would have cause to be deeply concerned if secretive, non-transparent and sophisticated data analytics would be used with the outcome that any customer, particularly those who have been loyal to an insurer, or those who are vulnerable and as a result have not switched, end up being penalised. That is why the investigation is so important in shedding light on the issue. The ‘Dear CEO’ letter makes interesting reading. It is clear that pricing practices and decisions simply have not been focused on consumers.”
She said insurance is not a luxury, it is essential for consumers and businesses, being mandatory in the case of motor vehicle owners and practically compulsory for home owners with mortgages.
“We take the view that it is essential in the interest of the customer that all factors that feed into the price of the product be managed with the utmost integrity, fairness and transparency. It is not clear yet that insurance companies of themselves can be relied upon to address the issues,” she concluded.