FBD Holdings - Price walking to be banned under CBI recommendations

Davy Research
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The Central Bank of Ireland’s (CBI) recommendations for the personal home and vehicle markets, which will likely come into force during 2022, are similar to those recently brought in by the Financial Conduct Authority (FCA) in the UK and broadly in line with its interim report published in December 2020. It will see price walking banned for existing customers, while allowing insurance firms to compete for new customers via introductory discounts. The proposals will likely have some impact on premium income, albeit FBD has less exposure to the home insurance market but should also be seen against the context of industry reform, particularly on claims.