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Do you ever wonder why your insurance premium increases every year when you renew? Or why does it never go down when not a single claim has been made?

Most people believe that their insurance premium depends on how likely they are to make a claim and how much that claim costs their insurer would. But that’s far from the full story.

A report released by the central bank in November found that the average car insurance premium had increased 35 percent over the past decade, although claims cost had decreased 9 percent were.

This involves using big data and complex pricing models to identify consumers who are more likely to renew and then charge them the highest price they’ll pay.

instead of you for yours Loyalty and rewarding your bonus with reduced prices without claims, increase your premium knowing that you are less likely to shop or switch.

This practice affects a large number of Irish policyholders and costs them many hundreds of euros each year.

Today the Dáil will vote on my insurance law to ban this practice, reduce insurance costs and increase transparency in how insurers calculate prices.

In September 2019 I wrote to the central bank and requested them on to investigate this practice. The following month, I filed a 130-page complaint detailing the impact on consumers.

The central bank agreed to this request and began its investigation in early 2020.

In December, they found that this practice was widespread in the insurance market and loyal customers were being billed up to 35 percent more than the actual cost of their policies.

This meant that a Liberty Insurance customer would get a $ 1,420 renewal offer for their car insurance before he was offered a premium of € 680 for the exact same policy with the same provider when he went online.

More than 70 percent of motorists and homeowners renewed their insurance in 2019. Many of them are victims of this practice, paying more than the actual cost of their policies.

It has been found that double pricing has a disproportionate impact on older and vulnerable customers. My legislation will end this price cut. It prohibits double pricing, so insurance companies cannot charge you more than the actual cost of your policy.

This follows action by the UK Financial Regulator, which announced it would ban the practice last September. The UK regulator found that a double pricing ban would bring real benefits to consumers by saving them between € 4 billion and € 13 billion and cutting average insurance prices by up to 30 percent over the next decade.

They also noted states that a ban would result in fairer competition and less time for customers to switch prices and negotiate. My legislation provides for a similar price device. Irish consumers earn no less.

If an insurer offers a customer a renewal premium, the price cannot be higher than the premium they would have been offered as a new customer.
As the UK regulator has determined, this will bring home and car insurance prices down.

Based on the price, how likely a customer is to be renewed, how old they are, their income or will be Educational qualification prohibited. What is crucial is that the central bank be empowered to sanction any insurer who continues to use this discriminatory practice while also establishing a code of conduct that can be used in court and by the financial ombudsman.

Like regulators in the UK and the United States States have found that double pricing discriminates against customers. A ban would lower prices, increase transparency and promote fairer competition.

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Because of this, today’s legislation will empower the central bank to draft the rules for the ban and use their expertise to remove this practice from the insurance market.

They have never told their clients that they have a price-cutting practice which is banned in 20 US states and will be banned in the UK later this year.

My legislation will ban this practice in the Irish market, lower prices and bring transparency to consumers once and for all. It is important that all parties that want to help consumers and hold the industry accountable support my bill today.

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Pearse Doherty: Why TDs Should Support My Bill To End The Loyalty Penalty And Lower Insurance Costs Comments

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