The Central Bank has said it will contact consumers to find out about their experiences of dual pricing in relation to insurance.
This practice occurs when people are quoted different rates for the same cover and often current customers are charged higher prices than new ones.
The Central Bank appeared before an Oireachtas Committee this afternoon to discuss the issue.
According to the bank, this type of price discrimination is a worldwide issue that has been going on in the insurance industry for years.
Today's meeting was told that representatives from the bank will meet with consumers to understand their experience of switching or choosing to stay with their insurance providers.
Insurance company CEOs will also be contacted over the terms of reference and expectations for the review.
Derville Rowland, Director General of Financial Conduct at the Central Bank said the review, which will focus on home insurance, will be helpful to gather the facts rather than anecdotal evidence.
She said: "While differential pricing has been used in the insurance industry for some time, in more recent years, the tools available for differential pricing have become increasingly sophisticated with greater access to big data, more granular assessment and more accurate modelling techniques brought about by new technology.
"A comprehensive data-gathering and analysis is essential in order to move beyond anecdotal evidence or individual case studies which, while potentially pointing to problematic practices, do not establish a comprehensive view across the industry.
"The consumer insight phase will include meetings with consumers to understand their experience of switching or choosing to stay with their providers," she said.
Sinn Féin Finance spokesperson Pearse Doherty had written to the Governor of the Central Bank requesting an investigation into dual pricing in September.
He welcomed the review by the bank but said he was "concerned that the recommendations following this review will fall short of the bold action that is required to protect consumers".
He said: "Dual pricing is practiced without the knowledge of consumers and discriminates against vulnerable groups and loyal customers.
“While the Central Bank has no role in setting premium prices, it is able to ban pricing practices that are not compliant with the principles of fairness and transparency."
