Sinn Féin to publish legislation banning dual pricing in the insurance market – Pearse Doherty TD
Sinn Féin spokesperson on Finance, Pearse Doherty TD, will publish legislation this week to ban the practice of dual pricing in the Irish insurance market.
Teachta Doherty has long called for a ban on the practice, which leads to consumers being charged artificially high premiums.
This legislation will ban the use of dual pricing in the insurance market and give the Central Bank, Courts and FSPO the power to enforce these new laws.
It will reduce insurance prices for consumers.
Speaking today, Teachta Doherty said:
“Insurance companies are using dual pricing to rip off customers with artificially high premiums.
“They do this using big data and complex pricing practices to target costumers who are less likely to shop around, before charging them artificially high premiums on renewal.
“Many will notice this when they compare the price they are offered on renewal with the price they are offered by the same insurer when they go online.
“In Britain, the FCA found that 6 million policyholders were overcharged a combined total of €1.3 billion as a result of dual pricing in 2018 alone.
“That is why the British regulator is banning the practice. It is why dual pricing has been banned in 20 US States since 2014.
“In September 2019, I wrote to the Central Bank requesting they investigate this practice, submitting a 130-page complaint to the Governor.
“Dual pricing discriminates, it overcharges customers and distorts the market.
“This week I will publish legislation that will ban the use of dual pricing by insurance companies.
“This legislation will reduce premiums, resulting in significant savings for consumers.
“It will also reduce the cost and amount of time consumers spend switching, and increase competition in the insurance market.
“It will also require insurers to inform customers of the factors they have used to calculate their premiums at renewal.”