Irish
Transparency needed in Irish Insurance sector according to The Competition Authority
By Finfacts Team
Mar 8, 2005, 14:08

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.

• 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: