Irish non-life insurers should take note of EIOPA's recent
supervisory statement on differential pricing practices, as it
applies to all classes of non-life insurance business and is
therefore broader in scope than the Central Bank (Supervision and
Enforcement) Act 2013 (Section 48(1)) (Insurance Requirements)
Regulations 2022, which chiefly dealt with price-walking (a
sub-type of differential pricing) in the consumer home and motor
insurance markets.
Differential pricing practices arise where customers with
similar underwriting risks and costs of service are charged
different premiums for the same insurance product. The supervisory
statement applies to all non-life lines of
business, as these typically need to be renewed on a regular
basis.
