Differential Pricing Practices In The Non-Life Insurance Sector – EIOPA Supervisory Expectations

On 16 March 2023, the European Insurance and Occupational Pensions Authority ("EIOPA") published a supervisory statement on differential pricing practices in non-life insurance lines of business ("Supervisory Statement"), aiming to eliminate price-setting strategies which lead to the unfair treatment of customers.

1. Background

Differential pricing practices are pricing practices where customers with a similar underwriting risk and cost of service are charged different premiums for the same non-life insurance product.

Whilst these types of pricing practices are not new, EIOPA considers that they may raise important concerns about possible detrimental and unfair outcomes for vulnerable customers.