A sign at a protest against rising insurance costs in Dublin in 2016 Image: Sam Boal A sign at a protest against rising insurance costs in Dublin in 2016 Image: Sam Boal A MAJOR REPORT has recommended banning insurance companies from charging higher premiums to customers who renew their home and motor policies rather than shopping around for better value.
This morning, the Central Bank has released its final report on differential pricing in the home and motor insurance sector. “Our analysis showed that long-term customers pay, on average, 14% more on private car insurance and 32% more on home insurance than the equivalent customer renewing for the first time,” the Central Bank said.“This means that at the point of renewal, insurance providers cannot charge personal consumers who are on their second or subsequent renewal a premium higher than they would have charged them if they were a year one renewal consumer at that point in time.
After the first phase of the review was completed last year, the Central Bank concluded that while “a number of firms maintain that they do not utilise differential pricing… the majority of firms do” engage in it “through various techniques”. “The Central Bank has found that renewing customers are paying significantly more than the actual cost of their policy.
The report was also welcomed by the Minister of State with responsibility for insurance Sean Fleming and Minister for Finance Paschal Donohoe.