Insurance customers will have additional protections under new regulations to be implemented from July 1st.
The aim is to ensure that motor and home insurance customers do not get penalised for their loyalty – a practice known as ‘price walking’.
From July 1st it will not be possible for insurers to charge any renewing customers a premium that is higher than they would have charged a consumer with a similar risk profile who is renewing their policy after the first year of having their policy with the same company.
The Central Bank will still allow insurance companies to offer a discount to new customers as this may encourage consumers to switch providers and thus improve competition within the industry.
The Central Bank regulates the insurance sector and has completed several reviews into how the Irish market operates and will now examine the issue of whether automatic renewal should require an opt-in decision by customers or not.
The new regulations will also include changes to ensure customers get better information and reminders from their insurers, including the right to cancel, when they are signed up to automatic renewal.
