The Majority Of Insurance Companies In Ireland Are Applying Some Form Of Differential Pricing

Monday, 14 December 2020 15:27

It's used when issuing quotes for customers

A Central Bank review has found the practices have led to people of a similar risk paying different premiums.

Niall Colbert reports:

'This latest Central Bank report has found that differential pricing can have benefits and costs for consumers. The regulator says the practices lead to customers of similar risks and cost of service paying different premiums. These happen for reasons other than risk and cost of service. Dual pricing is one form of these pricing practices. It's evident across the car and home insurance markets and means loyal customers who renew their policy are paying significantly more than new customers of similar risk. After analysing consumer trends, the regulator found people tend to show a clear preference for staying with their existing insurer, that people have a limited knowledge of how insurance works, and because you can't get on the roads without it, insurance is frequently viewed in largely negative terms.'