Differential Pricing 

We’re human about insurance, and sometimes that means making important information easier to understand for our customers. The Central Bank of Ireland recently conducted a review into Car and Home Insurance pricing across the Irish market, and as a result, they introduced a series of measures to strengthen the consumer protection framework. We’ve put together a simple summary of these steps to help you understand how you’ll be affected when they’re introduced on the 1^st July 2022. 

1. What is ‘price walking’ – and why is it banned?
   The Central Bank is banning a practice known as ‘price walking’. This means that from 1st July 2022, when you renew your car or home insurance for the second time or more, your insurance provider 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.
   
2. Will reviews of pricing policies and processes change?
   These new measures mean that providers of car and home insurance will have to review their pricing policies and processes annually to maintain a focus on pricing practices and the impact these practices may have on customers. This should also ensure adherence to new pricing provisions and the fair treatment of consumers.
   
3. How will the automatic renewal process work?
   If your car or home insurance policy renews automatically by direct debit, that won’t change. However, now you will now be given additional information to help you make more informed decisions when renewing your insurance.

For more information on the new regulations, take a look at the Central Bank of Ireland’s website, available here.

The premium you have been offered for your policy is set by the Insurer of your Policy (which will be clearly set out in any correspondence we send to you regarding your Policy). An Post Insurance also applies certain fees, which again will be clearly set out and are included in our Terms of Business. Your premium may increase (or indeed, decrease) based on the Insurer’s updated view of relevant factors affecting your risk, including claims costs, rising inflation and the ban on price walking resulting from the Differential Pricing Regulations. 

The premium you have been offered for your policy is set by the Insurer of your Policy (which will be clearly set out in any correspondence we send to you regarding your Policy). An Post Insurance also applies certain fees, which again will be clearly set out and are included in our Terms of Business. Your premium may increase (or indeed, decrease) based on the Insurer’s updated view of relevant factors affecting your risk, including claims costs, rising inflation and the ban on price walking resulting from the Differential Pricing Regulations. For you, the latest view for your risk has resulted in a premium reduction. 

Any premiums we have offered you previously were correct and based on the Insurer’s view of the risk at that point in time. As such, there is no refund due for previous insurance periods. 

It’s important to read the offer in detail – put the kettle on and take some time to go through your renewal documentation. This outlines your own personal details, your premium, your cover and sums insured as well as highlighting the benefits included on your policy. We recommend that at every renewal you review all cover on your policy to make sure it’s suitable for your needs. You should check your buildings sums insured to ensure they reflect today’s rebuilding costs and any additional cover options you have chosen or may require. The following website can help you check current estimated rebuilding costs: please click here.

Your renewal documentation also includes details of your renewal payment options. If you currently pay your premium by direct debit, your policy will renew automatically unless you contact us at least 10 days before your renewal date to advise us that you do not wish your policy to renew automatically.

You should keep your insurance arrangements under review as there may be other alternatives in the market that could provide savings for you for similar cover. More information in relation to getting insurance quotes is available on the Competition and Consumer Protection Commission website here.

Our experienced Renewals team is on hand to help you go through your options. Contact us at 0818 33 33 35 to discuss the best price available for your policy renewal, or to make any changes to your policy at renewal. We’re here to provide the cover and care you need.

We understand that life is busy, and there’s lots to do, but it’s important to take the time you need to go through your paperwork. We encourage you to review your renewal documentation in detail. It outlines your own personal details, your premium, and the cover and benefits included on your policy. We recommend that at every renewal you review all cover on your policy to ensure it’s suitable for your needs, including any additional cover options you have chosen or may require.

Your renewal documentation also includes details of your renewal payment options. If you currently pay your premium by direct debit, your policy will renew automatically unless you contact us at least 10 days before your renewal date to advise us that you do not wish your policy to renew automatically.

You should keep your insurance arrangements under review as there may be other alternatives in the market that could provide savings for you for similar cover. The Competition and Consumer Protection Commission website (available here) is a great resource for further information on getting insurance quotes.

Cars can be complicated, but car insurance doesn’t have to be: to discuss the best price available for your policy renewal, or if you would like to make any changes to your policy at renewal, get in touch with our friendly Renewals team on 0818 33 33 35. We’re here to help.