British ban on dual pricing should be replicated in Ireland to tackle Insurance cost – Matt Carthy TD
Cavan Monaghan Sinn Féin TD, Matt Carthy, has said that the announcement by the Financial Conduct Authority in England, that it will be banning dual pricing in the insurance market effective from 1st January 2022, should be replicated in Ireland.
He said that Sinn Féin legislation, previously adopted by the Dáil, has been delayed by government.
The decision by the British regulator to ban the practice, which identifies loyal customers and then charges them artificially high premiums, will save consumers up to €4.9 billion in the next 10 years.
Deputy Carthy called on the Government to implement the Sinn Féin legislation that will also ban the practice in the Irish market.
Teachta Carthy said:
“This week’s announcement by the FCA will ban the practice of dual-pricing in Britain, and save British insurance companies most loyal customers nearly €5 billion over the next 10 years.
“Sinn Féin have introduced legislation that passed Second Stage in the Dáil in February, but which was delayed from progressing by the government for nine months.
“That delay is unacceptable, and the legislation should be implemented immediately.
“Many of the largest insurance companies in this state will be subject to this ban in Britain and the north.
“This will result in a situation whereby customers in Tyrone and Armagh will have greater protections than those in Monaghan or Cavan.
“There is no reasonable excuse to allow insurance companies here to continue to overcharge their most loyal customers south of the border until next year.
“They should not be allowed to continue this price gouging practice.
“In December the Central Bank found that dual pricing in the Irish market has resulted in 2.5 million policyholders paying €187 million more than the actual cost of their policies each year.
“7 out of 10 motorists and 8 out of 10 homeowners renew their insurance every year.
“They are victims of dual pricing and the loyalty penalty. It is time to ban it”.