A ban on so-called 'loyalty penalties' implemented by insurance companies on policy renewals will come into effect on the 1st of July.
The Central Bank has announced the move, which would stop insurance companies from charging loyal customers higher premiums despite the risk level remaining the same.
However new customer discounts will be allowed to remain in place, in order to encourage consumers to shop around.
Director General at the Central Bank, Derville Rowland, says they analysed the practice for over a two-year period:
"All of that work was needed so we could make evidence-based policy making so we could come up with balanced and effective proposals addressing the harms that we saw customers were at risk of.
"In the course of that work what we saw was that customers who stayed with a provider for longer were charged more for no other reason other than loyalty."
