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ARTICLE · 07 SEPTEMBER 2021

Walking Away From Loyalty Penalties – The End For Differential Pricing?

William Fry LLP
William Fry LLP
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William Fry LLP

William Fry LLP

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In its review of differential pricing (Review), the Central Bank of Ireland (CBI) has proposed that the practice of "price walking", whereby customers are in effect penalised for not walking away from their insurer after a year of coverage, is abolished.

IrelandInsurance
John Larkin
John Larkin
Eoin Caulfield
Eoin Caulfield
Ian Murray
Ian Murray
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In its review of differential pricing (Review), the Central Bank of Ireland (CBI) has proposed that the practice of "price walking", whereby customers are in effect penalised for not walking away from their insurer after a year of coverage, is abolished.

What is differential pricing?

Differential pricing involves two customers being offered different premium prices for reasons other than risk or cost to the insurer. As noted by the CBI repeatedly in the recent past, this practice causes harm to consumers, particularly those consumers who do not wish to switch insurance providers.

How much am I paying?

The Review found that customers who remained with their insurer for nine years or more were paying 14% more for car insurance and 32% more for home insurance versus a new customer.

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