On 8 September 2020, the CBI issued a letter to the insurance sector setting out it’s expectations in respect of the pricing of insurance policies. This concludes the first phase of the Consumer Protection Directorate’s Review of Differential Pricing in the Motor and Home Insurance Markets.
The CBI observed that the majority of 11 firms being reviewed utilise differential pricing through various techniques and they have directed boards to have a clear understanding of the extent to which differential pricing is practised – and its effects on customers. Firms should carefully consider their actions in response to the “Dear CEO” letter and the implications of these to their business.
Following Phase One observations, our document below explores: