Remember those surprise inspections conducted by the European Commission last year as part of an investigation into alleged cartel activity in the Irish motor insurance industry?
Now it looks like representative body Insurance Ireland is under fire for supposedly creating market barriers for new players. According to a report by RTÉ, an application form to join the association is being examined as part of the European Commission’s major probe.
The report said sponsorship by an existing member is required, noting the “Name of the firm(s) sponsoring the application?” portion of the form. It added that the investigation is looking into allegations that the lobby group has withheld membership particularly from new market entrants.
Insurance Ireland, which provides access to information such as claims history, has denied refusing membership and violating competition regulation.
“Insurance Ireland has cooperated fully with the European Commission in its enquiries and is confident its practices are fully compliant with competition law,” The Times quoted the trade body as saying. “The European Commission is in an information-gathering phase and has not made any findings or raised any objections in respect of membership of Insurance Ireland or otherwise.”
Meanwhile RTÉ cited Alliance for Insurance Reform spokesperson Peter Boland as describing the market as having no transparency nor accountability.
The report also mentioned a Gibraltar-based insurer which exited Ireland in 2016 due to what the firm described as “a market disadvantage” it believed was brought about by lack of engagement by Irish industry bodies.
