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Are the conditions of access to Insurance Ireland’s Insurance Link data pooling system restricting competition? That is what the European Commission wants to find out “as a matter of priority” in a formal enquiry into the trade body.
Described as “in-depth,” the probe comes nearly two years after surprise inspections in the Irish motor insurance market were conducted by officials of the Commission. You can read more about those here.
The Commission has now opened a formal antitrust investigation aimed at evaluating whether Insurance Ireland’s practices are violating European Union competition rules through the association’s data pool.
Conditions imposed on organisations wishing to participate in and access the Insurance Link database will be examined to determine whether they may have had the effect of placing these firms at a competitive disadvantage in comparison to those already able to access the database.
According to the Commission, data pooling arrangements are often pro-competitive but may lead to restrictions of competition in some situations.
“Insurance is essential for all car drivers in Europe,” noted Commissioner Margrethe Vestager, who is in charge of competition policy.
“We are investigating whether companies wishing to offer their services on the Irish motor insurance market may have been unfairly prevented from accessing a data pool managed by Insurance Ireland for its member companies.”
Vestager said this could potentially reduce motorists’ choice of auto insurance policies at competitive rates.
