FCA publishes research paper on price discrimination in financial services
Regulatory Updates | 06/07/18
The paper sets out a framework for considering the fairness aspects of price discrimination and how best to balance them with economic considerations.
The paper notes that recent examples that have attracted negative attention include:
• longstanding customers receiving a significantly worse deal than new customers, particularly in insurance and cash savings
• insurance customers paying more because of their email address, gender or potentially even the ethnicity of their name
• fears that big data will make it easier for firms to charge personalised prices based on a customer’s profile.