New rules introduced by the Central Bank should make it easier for customers to deal with insurance claims and in turn, help consumers reach fairer insurance settlements.
In addition, the new rules around insurance quotes will make it easier for customers to understand how certain actions, such as accumulating penalty points - or paying insurance premiums monthly rather than upfront – could make their insurance premium more expensive.
This is according to the insurance broker Gallagher, which is advising consumers to get up to speed on the new rules being introduced under the Central Bank’s revised Consumer Protection Code (CPC), which came into force on March 24, 2026.
The ultimate aim of the new code, which covers a wide range of areas, is to protect consumers of financial products today and in the future.
Ban on insurance auto-renewals
Gallagher is also drawing the attention of consumers to a major change in the new rules, whereby there is now a ban on the auto-renewal of travel insurance, gadget insurance, dental insurance and pet insurance policies.
Geraldine Kelly, head of personal lines with Gallagher explained:
“The Central Bank’s new Consumer Protection Code (CPC) includes a number of new rules which will put insurance customers on a better footing.
The ban on the auto-renewal of travel, gadget, dental and pet insurance is a positive development as it reduces the risk of consumers paying for products that they no longer need or that aren’t suitable for them. This ban also reduces the risk of consumers missing out on opportunities to shop around to find the most suitable or cost-effective product. However, it’s important that holders of travel, gadget, dental and pet insurance policies which are due to expire in the coming months get up to speed on the steps they need to take if they wish their policies to be renewed. In particular, those who wish to renew their policies will need to engage with their insurer or broker prior to the expiry date to ensure their policy is renewed on time.”
More transparent claims process
The revised CPC also has a series of new rules which aim to enhance the transparency of the process for those making insurance claims – and to improve the experience of customers in this regard[1].
Commenting on this aspect of the new rules, Ms Kelly said:
“It can be daunting for consumers to make insurance claims, particularly if they have just been in a car accident or have experienced trauma. In addition, consumers whose homes have been badly damaged by a storm, flood, fire or other event could be under a lot of emotional pressure and stress – and so, need the claims process to be as straightforward as possible. So, the new rules around the transparency of insurance claims are welcome as they should make it easier for customers making insurance claims to consider, engage and respond to settlement offers - or the decline of a claim.”
10 ways the new Consumer Protection Code will help insurance customers
In the wake of the new CPC rules kicking in, Gallagher has put together 10 must-knows on how the new requirements will impact insurance customers:
- Auto-renewal of travel, gadget, dental or pet insurance is now banned
Under the new CPC, consumers will no longer have their policies for travel insurance, gadget insurance, dental insurance or pet insurance automatically renewed unless they have provided their explicit consent for the automatic renewal in advance. - No ban on automatic renewals of health, home or car insurance
The new opt-in rules around automatic renewals will not apply to all types of insurance products, such as health insurance, home insurance or car insurance as for these particular products, consumers could be at a substantial disadvantage if they didn’t renew their policy in time and their policies lapsed as a result. - Insurers must give 20 days’ notice if car or home insurance is to expire
Where a home or car insurance policy is due to expire or be renewed, the insurer must provide the customer with 20 days or more advance notice of the impending expiry or renewal date. This 20-day notice rule applies to all non-life insurance products, including health insurance and travel insurance. - Health insurers must notify customers if their policy lapses
Health insurance providers must notify all adults named on a health insurance policy if the policy (or their cover under the policy) ceases. This notification must be sent within 10 working days of the consumer ceasing to be insured under a health insurance contract. This rule does not apply to a health insurance contract under a corporate health insurance scheme arranged by an employer. - Insurers must outline how discounts and loadings impact cost of insurance
The new CPC includes new rules to improve the transparency of insurance quotes. Under one such rule, where an insurance quote is subject to a discount or loading, the premium without such discount and loading must also be stated in the quotation. Furthermore, when providing an insurance quotation to a consumer (including a renewal), any difference in cost between paying the premium by way of a lump sum or in instalments (including detail of the monetary value of any difference between them) must be explained. It must be noted that some insurers also include this information in their quotations. - T’&C’s of No-Claims Discount to be included in insurance policy
Where a no claims discount has been applied to the premium charged to a customer, the terms and conditions of the no claims discount must be included with the insurance policy, including any restrictions on the use or availability of the discount. - Follow-up calls to online quotes only allowed with customer consent
Where a customer seeks an insurance quote online, follow-up calls from the insurer or insurance undertaking are only permitted with the consent of the customer. - Insurers have five days to explain why motor or property cover has been declined
Where an insurer refuses to quote a driver for motor insurance, within five working days of the date of its decision to refuse, the insurer must inform the individual of its decision to refuse and provide the reasons for refusing cover and notify the individual of their right to refer the matter to the Declined Cases Committee. Where an insurer refuses to quote a home owner for property insurance, within five working days of the date of its decision to refuse, the insurer must inform the individual of its decision to refuse; the reasons for refusing cover and notify the consumer that failure to insure a property may result in a breach of the terms and conditions of any loan agreement which has been secured on that property. - New rules stipulate what insurers must consider for claims settlements
The new CPC stipulates a number of factors which insurance companies must consider when calculating their best estimate of a claimant’s reasonable entitlement including any evidence submitted to support the value of the claim, any evidence made known to the insurance undertaking by a third party, or evidence that should be reasonably available to the insurance undertaking. A customer must also be provided with details of any appeals mechanism provided by the insurance undertaking in respect of the decision made about their claim. Furthermore, where an insurer has decided to decline a customer’s claim, the reasons for this decision must be explained to the customer.
Insurers must tell claimant when a loss adjuster is working for them
An insurance company must clearly notify a claimant that when a loss adjustor / expert appraiser is appointed by an insurance company to assist in a customer’s claim and that this person acts in the interest of the insurance company rather than the customer. Furthermore, within five days of receiving notice of a motor insurance, property insurance, or other claim, the insurer must notify the claimant that where relevant, the claimant may appoint a loss assessor to act in the claimant’s interests but that any such appointment will be at the claimant’s expense.
