Q&A - Price Walking & Differential Pricing Regulations Commencing 1st July 2022June 2022
Further to our article in May’s edition of the RegSol newsletter (HERE
) on the new Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1) (Insurance Requirements) Regulations 20221 (the Regulations) which come into effect on 1st July 2022, the Central Bank have published the Insurance Regulations Q&A which our clients might find useful to further explain the implications to their business.
As our readers will note, the Regulations, applicable to insurance undertakings and insurance intermediaries, were introduced to benefit consumers and enhance the consumer protection framework. The new requirements impact three key areas:
- Pricing: A ban of price walking in home and motor insurance markets - from 1st July 2022, insurance providers cannot charge consumers who are on their second or subsequent renewals a premium that is higher than they would have charged a year one consumer renewing their policy.
- Annual Review of pricing practices and policies: Insurance providers are required to review pricing practices and policies for all customers.
- Disclosure of additional information to policyholders in relation to automatic renewal arrangements: Insurance providers must notify the customer that the policy will automatically renew if the consumer does not cancel the automatic renewal before a specified date.
The link to the Insurance Q&As can be found here: Insurance Regulations 2022 - Q+A updated May 2022 (centralbank.ie)