Government ‘not serious about fixing the Insurance rip off’

TD for Dublin South West Seán Crowe has criticised the Government for voting to suspend Sinn Féin’s proposed Insurance Bill for nine months, saying that thousands of customers are going to lose out through this cynical delaying tactic. The Insurance Bill would reduce insurance prices by banning the practice of ‘dual pricing’, used by companies to identify loyal customers and charge them artificially high premiums. The practice affects millions of policyholders, costing many customers hundreds of euro per year on their car and home insurance.
 
Teachta Crowe said: “The Government has voted to delay Sinn Féin’s proposed Insurance Bill to ban the practice of dual pricing and increase transparency in how the insurance industry sets prices. “The legislation would put money back in the pockets of motorists and homeowners by reducing their premiums. “It would stop insurance companies penalising and ripping-off loyal customers. “In the past decade, insurance costs have risen by 35 percent despite the cost of claims falling by 9 percent.  “Insurance companies price gouge Irish customers every year using a practice that is banned in 20 US states and is soon to be banned in Britain. 
 
“They use dual pricing to target loyal and vulnerable customers and then charge them artificially high premiums when they renew. “This is the so called ‘loyalty penalty’ means that customers are overcharged by hundreds of euros every year. “Banning dual pricing would overnight reduce the cost of home and car insurance for customers. It would require the Central Bank to draw up and enforce regulations that will govern the ban, with any insurance companies that defies or tries to ignore the ban facing heavy financial penalties. “In Britain, the financial regulator estimates that a ban would cut insurance costs for customers by 10%, saving customers between €4 and €13 billion over the next decade. “Unfortunately, the government here tabled a motion that would delay this legislation for nine months, delaying this reform for over a year. “Irish consumers cannot afford to wait 12 months and are the victims in this delay. “Thousands of loyal customers will now lose out because of this cynical delaying tactic from a Government that are not serious about fixing the insurance industry rip off.”