Ombudsman on dual pricing

Brendan Burgess

Brendan Burgess

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From the Oireachtas Finance Committee today (Very fast so read original before quoting)

Must treat customers fairly

Being fair means not unfairly discriminating.

improperly discriminatory - is a judgement I can make, even if it's in accordance with the law.

My office will not interfere in the commercial discretion of the provider as long as it's not improperly discriminatory.

But I would expect the same criteria to be applied to all customers.

recognising a dual pricing issue is a challenge

Customers should shop around.

If I find that an insurer's behaviour has been

Unreasonable, unjust, oppressive or unduly discriminatory

I can find against them.
 
McGrath
Have you had complaints on this?

Deering: We have identified about 18 which might fall into that category.

They are difficult and complex to investigate. A significant challenge.
 
price differentiation in the mortgage market

Have you examined those issues?

Is that practice inconsistent?

Deering: We have not looked at them at a global level.
That is more a matter for the regulator

McGrath
Have you found in favour of any customer across financial services ?

Deering: We have no example at the moment. If we do , we will bring it to the regulator.
 
Pearse
Is it unfair to use data such as how long they have been with you for a loyalty penalty.

One customer has two quotes for the same case with a difference of over €1,200

Could you judge that to be improperly discriminated.

Deering
Yes.
They can discriminate on the basis of risk.

I would look at other issues such as their renewal history.

Pearse
I shop around every year.
But I go back to the original and they always reduce it.

So it looks as if I have been with them for 10 years.

I got 33% reduction by going online.

At a public meeting one guy told his 6 friends and they got a reduction.
 
Senator Paddy Burke
Do you think that there is a cartel in insurance?

Ombudsman
I have no evidence of that. We deal with individual complaints.
 
Pearse again

When I talk about dual pricing, I am not talking about introductory offers.

I had a constituent. Borrowed €4,000 to buy a car and was quoted €4,000 by Liberty Insurance. I put the details online and got it for her for €1,200.

What powers do you have to investigate this?

Deering: We have significant powers
We can demand documents
And we can enter a premises and seize documents

We decide on the balance of probability and not "beyond reasonable doubt".

Pearse (clarifies an earlier statement)
The customer referred to earlier got three different quotes on the same day.
 
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