Insurance customers no longer facing 'loyalty penalty' following regulations

Regulations introduced last year to ban charging higher premiums to customers who remain with the same insurer are working as intended, Central Bank said

A Central Bank review into the insurance sector in 2021 found the practice of 'price walking'  —whereby a person is charged higher premiums the longer they remain with an insurer — was 'particularly evident'. Picture: Leah Farrell/Rollingnews.ie

The Central Bank of Ireland has said regulations banning the practice of “price walking” in the insurance sector are working as intended and consumers are no longer being hit with a “loyalty penalty”.

In 2021, the Central Bank undertook a review of differential pricing in car and home insurance markets due to concerns companies were engaging in unfair, hidden or discriminatory practices which sought to take advantage of customer vulnerabilities.