The Competition
Authority today published its final report on Competition Issues in the
non-life Insurance Market. The Study examines competition in motor,
employer’s liability and public liability insurance and was co-funded by the
Department of Enterprise, Trade and Employment.
Value of the
Non-Life Insurance Market Gross Premium Income
(non-life
Insurance) 2001-2003
The Authority makes 47
recommendations designed to make the insurance market in Ireland more open,
transparent and competitive. According to the report specific categories of
motorists, businesses, and voluntary groups are “locked in” to their current
insurance supplier. In addition new and existing insurance companies are “locked
out” of many important and profitable segments of the insurance
market.
Speaking at the launch
of the Report John Fingleton, Chair of The Competition Authority said:
“Profit levels for
insurance companies in Ireland are at historically high levels but unlike a
competitive market, new or existing companies are not responding quickly to the
profitable opportunities. Many motorists, businesses and voluntary groups do not
have enough information to help them search for better insurance quotes and when
they do search they find limited choice.”
The focus of the
Authority’s recommendations is to provide the necessary information to open up
the Irish insurance sector.
Providing this essential
information will:
-
Enable new &
existing insurance companies to get into or expand in the profitable Irish
insurance market, and;
-
Empower motorists,
businesses & voluntary groups to shop around for a better insurance deal.
The Authority’s
recommendations can be summarised under the following headings:
Recommendations to
open the insurance market for new & existing insurance companies
-
Centralised gathering
& publishing of industry statistics;
-
Insurance Statistical
Review available by June each year;
-
Transparency of claims
through the legal system;
-
Transparency in system
for non-insured drivers - Motor Insurance Bureau of Ireland;
-
Transparency in the
Declined Cases Agreement, and;
-
Insurance Compensation
Fund to cover all Irish mass risk.
Recommendations to open
the insurance market for motorists
-
Certified claims
history;
-
Break down of premium
charges;
-
Renewal notices direct
to customer;
-
Disclosure of all
commissions & compensation paid to intermediaries / brokers;
-
Clarity on types of
intermediaries / brokers, and;
-
Procedures for
companies to self-insure.
Recommendations to
open the insurance market for business & voluntary groups
-
Renewal notices 8
weeks in advance;
-
Break down of premium
charges;
-
Certified claims
history;
-
Cost surveys of
liability insurance;
-
Disclosure of all
commissions & compensation paid to intermediaries / brokers;
-
Clarity on types of
intermediaries / brokers, and;
-
Renewal notices direct
to customer.
Commenting
on the Report, the Minister for Enterprise, Trade & Employment, Mr Micheál
Martin said today:
