Central Bank say new insurance transparency rules will help consumers

Central Bank say new insurance transparency rules will help consumers

The Irish Central Bank say new rules being introduced today mean that insurers must now provide their customers with more information when renewing their motor insurance policies.

The Central Bank say the measures provide greater transparency to customers and will help them to make a more informed decision when purchasing insurance.

Insurers must now provide individual policyholders with details of the premium paid for private motor insurance renewals in the previous year, in order to improve transparency. This information must feature prominently on the same page as the renewal premium.

The Central Bank also requires all motor insurers to provide a quotation for each policy option available to the customer such as comprehensive, third party fire and theft cover, or third party only.

Furthermore, insurers must also extend the renewal notification period from 15 to 20 working days for motor, health, damage to property and general liability insurance, to allow policyholders more time to seek comparison quotes.

Commenting on the new regulations, Director of Consumer Protection, Gráinne McEvoy said, "These new Central Bank rules will help consumers make better informed decisions when shopping around for their insurance policies. Motor insurance in particular can represent a significant outlay for many people, so these changes will help people to shop around and make informed choices."

She added, "We are insisting that insurers put the price comparison on the same page of any renewal notice. This makes it easy for customers to see if their premium has increased. We expect the insurance sector to embrace these rules, in the best interest of their customers. And the Central Bank will closely monitor their compliance."

Source: www.businessworld.ie