“The Central Bank, which is supposed to be supervising the insurers on behalf of consumers, is actually doing the opposite, having abolished the only data that offered some insight into the industry, the so-called ‘blue book’ so that there is now no usable data available on the industry.”
These were the words of Alliance for Insurance Reform spokesperson Peter Boland, as the lobby group calls for transparency in the Irish insurance industry following reports of possible violations of competition law.
On the group’s website, Boland has accused insurers of “putting up fierce resistance to any elements of the new National Claims Information Database that would shed some light on their practices, while happily cherry-picking the elements of the new database that will reduce their costs.”
The regulator, as mentioned, has also been criticised for “doing the opposite” in terms of providing valuable insight.
“We call on the minister responsible, Michael Darcy, to protect the new National Claims Information Database from the influence of vested interests,” continued Boland in his comments on what the group describes as an insurance crisis. “Additionally, we demand that control of analysis and reporting of the National Claims Information Database be given to the neutral Personal Injuries Assessment Board rather than the Central Bank, which is now hopelessly compromised.
“And finally, we insist that the blue book be immediately reinstated and enhanced to restore the only transparency there previously was in the market before the Central Bank discontinued it in 2016.”
In a progress update published by the Cost of Insurance Working Group earlier this month, the Irish finance department report said of the proposed database: “Meetings between the Central Bank of Ireland (CBI) and private motor insurers concluded in March 2018. A draft technical specification was produced and circulated to the data sub-group for review and comment by end of April 2018, with a view to finalising the specification in early May 2018.
“While the CBI will not be able to formally collect data from insurers until the enabling legislation is enacted, insurers expressed a willingness to collaborate interactively with the CBI in the interim, to ensure that necessary system changes are implemented and processes are tested in advance of data submission.
“It is hoped that the legislation can be in place in the second half of the year; however, this will depend on the drafting being completed and the future legislative priorities of the Government and the Houses of the Oireachtas.”
Meanwhile a report by The Times cited a finance department spokesperson as saying that moving the administration of the database to another body would delay its establishment.
