The European Commission has decided the representative body for insurance companies in this market breached European competition rules.
Q: What exactly has the commission decided?
A: It has made a preliminary finding that Insurance Ireland restricted access to the market here, which denied motorists competitive prices.
The charge is that Insurance Ireland denied some insurers access to its Insurance Link platform, a database used to tackle insurance fraud.
An insurer has to be a member of Insurance Ireland to access the database. An insurer that cannot access it cannot properly assess risks to operate in this market.
Commission executive vice-president Margrethe Vestager said the situation has caused high prices in this market.
Q: What happens now?
A: Insurance Ireland will be given a chance to respond. It could be two more years before this is resolved. Insurance Ireland could be fined and told to hand over its database to the likes of the State’s Personal Injuries Assessment Board.
However, individual insurers look to have escaped sanction, as the commission’s focus has narrowed down to Insurance Ireland. This is despite the commission carrying out dawn raids on a number of insurance providers here in 2017.
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Q: Will my premium come down due to this?
A: The preliminary finding by the European Commission is not likely to have any major impact on premiums. A fine is likely for Insurance Ireland.
The commission can fine up to 10pc of turnover, but Insurance Ireland’s turnover is made up of membership fees, which means any fee will not be large.
Q: Is this the only probe?
A: No, the Central Bank is conducting a probe into dual-pricing – charging more to loyal customers reluctant to shop around; and the Competition and Consumer Protection Commission is probing price-signalling by insurers.
Q: Should my premium not be coming down anyway?
A: The move by the State’s judges to recommend lower payouts for personal injuries claims should see premiums falling dramatically.
Challenge any renewal you get that does not reflect this.