The EU insurance regulator Eiopa is planning discounts for new customers and similar pricing strategies. “In Eiopa’s view, some of these practices are not covered by the applicable EU legislation and lead to unfair treatment of customers,” says a paper from the authority. Insurers often lure new customers with cheaper tariffs than existing customers, even if they do not differ in their risk profile. Depending on how loyal a customer has proven to be, he must expect higher premiums when extending his contract. Above all, the price competition in car insurance is carried out in this way. That unreasonably penalizes loyal customers; among them are older people in particular, who, according to experience, change providers less often.
EU Insurance Supervision – Focus on discounts for new customers – Economy
