Motorists could be in line for cheaper premiums and rebates if the insurance industry proves to be preventing new players from entering the market.
This comes when the European Commission established Insurance Ireland broken Antitrust rules in the European Union, which effectively restrict competition in the industry.
What Irish Examiner An initial decision by Insurance Ireland reportedly found “arbitrary delays or physical denial of entry” for companies wanting to access the data exchange platform, Insurance Link.
“This prevented the competitive entry of new players and thus reduced Irish drivers’ choice of competitively priced car insurance policies,” said EU Competition Commissioner Margrethe Vestager, adding that “the car insurance represents a significant cost in the budget of each family and company ”.
Consumer advocate Dermot Jewell said the findings were “very important and serious.”
He said lower premium requests for motorists won’t be enough and refunds may be on the table if the investigation’s findings are confirmed.
Jewell, a policy and council advisor to the independent nonprofit Irish Consumers Association, said the commission’s findings deserved urgent attention from the government, JPAC and the central bank.
Main criteria
He noted that vehicle insurance is a legal requirement and, when choosing an insurance policy, affordability and competitive selection are key criteria for the consumer.
“The commission raises very important and serious issues that Insurance Ireland must address fully and in detail,” said Mr. Jewell.
“The claim that any type of barrier to entry to this specific area of insurance requires immediate and urgent government intervention and investigation by the JPAC and the Central Bank,” he added.
Insurance in Ireland covers more than 90 percent of the Irish car insurance market. Its membership includes AIG, Aviva, Axa, FBD, RSA, and Zurich.
He referred to the Commission’s statement, but it is important to emphasize that it is a preliminary opinion and not his final decision.
“For the past four years, Insurance Ireland has cooperated with the European Commission investigation and we will continue to do so during this phase of the process,” it said in a statement.
“We will now assess the points identified by the European Commission, and we are confident that we can allay the perceived concerns of the European Commission.”
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