Home and Motor Insurance Rules
(Ensure cookies are turned "on" to load the video.) | Transcript of the video"What new rules will protect home and motor insurance consumers in 2022?"
Central Bank of Ireland has introduced new rules to protect home and motor insurance consumers – effective from 1 July 2022.
The new rules follow the Central Bank's 2021 review of differential pricing in the home and motor insurance markets.
The principal conclusion from this review was that the practice of price walking could result in unfair outcomes for some consumers.
The Central Bank proposed a series of measures to strengthen the consumer protection framework in the areas of pricing practices, annual review and record keeping, and automatic renewals.
These proposals were set out in a formal consultation paper, which sought views from relevant stakeholders.
The consultation period closed on 22 October 2021, and 14 responses were received.
These responses, and a feedback statement from the Central Bank, have now been published.
Insurance Regulations Requirements 2022 | pdf 173 KB
Insurance Regulations 2022 - Q&A (updated 6 May 2022) | pdf 510 KB
New rules to protect consumers
Having concluded the consultation process, the Central Bank is introducing the following new rules to protect consumers and make buying car and home insurance fairer. These rules are effective from 1 July 2022.
- Price walking ban
The Central Bank is banning a practice known as “price walking.” Price walking is where you are charged a higher premium the longer you remain with your insurer, and for no reason other than staying with the same provider.
Banning price walking ends the “loyalty penalty” insurance customers can experience for staying with an insurer. As of 1 July 2022, when you renew your home or motor insurance for the second time or more, your insurer can no longer charge you more than someone who is renewing for the first time, and has a similar risk profile and cost of service to you.
- Review of pricing policies and processes
Providers of motor and home insurance will have to review their pricing policies and processes annually. This will ensure insurance providers focus on pricing practices and the impact these practices may have on customers, while also ensuring adherence to new pricing provisions and the fair treatment of consumers.
- Automatic renewal process
If your home or motor insurance policy renews automatically, you will now be given additional information that will be consistent across insurance providers. This will help you make more informed decisions when renewing your insurance, and prompt you to consider if your insurance policy continues to serve your needs and whether you should think about switching to another provider.
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