Release: Brokers Ireland Strongly Reject CCPC Preliminary Study
Thu Sep 17 2020
Brokers Ireland said the preliminary findings by the CCPC in relation price signalling during 2015 and 2016 that included the IBA, one of the organisations that merged with PIBA in 2017 to form Brokers Ireland, are strongly rejected and would be vigorously challenged.
The organisation said there had been a prolonged ‘soft period’ (falling premiums) in the motor insurance market, which became protracted following the last recession. By 2013 there was a change of course with diminished capacity in the insurance industry arising from the failure of a number of insurers in the Irish motor insurance market, a massive recapitalisation of the Irish arm of an international insurer and the impending application of Solvency II regulations.
By 2015, the increases in motor insurance premiums had become a frequent subject of dinner table conversation and general comment. The IBA, reacting to public interest, participated in this debate.
Diarmuid Kelly, Chief Executive of Brokers Ireland said: “Whatever the merits of this, the actions of the IBA cannot, in fairness, be said to have caused or contributed to increasing the cost of motor insurance. The upward cycle was firmly in action by this point, due to factors entirely outside the sphere of influence of the IBA,” he said.
IBA merged with PIBA in 2017 to form Brokers Ireland, with significant changes at management level in the new organisation.
Mr Kelly said from the outset, Brokers Ireland adopted rigorous procedures to ensure the new body was in compliance with all aspects of competition law.
“With around a dozen and a half insurers and 300 Insurance Brokers operating in the State, competition is alive and well in the Irish motor insurance market. It is time for public policy to tackle the key area that will actually deliver lower premiums to consumers – the cost of claims,” he concluded.