Motor insurance customers must be refunded if anti-competitive behaviour is confirmed
- CPCC’s preliminary report suspects anti-competitive cooperation in some motor insurers over a 21-month period during 2015 and 2016.
- Findings come on top of Central Bank report which found massive difference in claims costs and premium hikes by insurers.
Responding to today’s preliminary findings on the motor insurance industry from the Competition and Consumer Protection Commission (CCPC), Labour’s Finance spokesperson Ged Nash said:
“Today’s damning preliminary report from the CCPC suggests some motor insurers were acting almost as a cartel but we await the final outcome of the investigation.
“The publication today however confirms what many ordinary punters already suspected – that some insurers have potentially coordinated market activity on motor insurance premiums through ‘price signalling’.
“If confirmed this would be conclusive evidence of an historic rip-off at the expense of Irish drivers. If a successful investigation is concluded then there must be a commitment to refund people who ended up paying too much for their motor insurance.
“Between 2013-2018, motor insurance premiums rose by a massive 62% (from €435 to €706).
“Insurance firms have repeatedly cried foul and put the blame on rising claims costs, despite them only rising by 14% in the same period.
“But today’s report sheds some light on the possible real reasons behind rocketing motor insurance prices that are completely out of kilter with other EU countries.
“The Government and Central Bank must rapidly and robustly respond to finally end this insurance rip-off which is crucifying businesses and hammering family budgets.”