The Competition and Consumer Protection Commission (CCPC) has today issued witness summonses and information requests to major motor insurance providers and industry groups representing insurers and brokers.
The CCPC is currently investigating suspected breaches of competition law in the motor insurance sector. The investigation relates to industry participants openly signalling up-coming increases in motor insurance premiums in the State.
According to Isolde Goggin, CCPC Chairperson, “Markets work best where businesses vigorously and independently compete against each other for customers. Statements signalling future pricing predictions or intentions may result in a degree of unspoken coordination, which may breach competition law. Statements by senior industry players have raised serious suspicion as to whether there is a link between these messages and subsequent price increases. The evidence collected through both the witness summonses and the information requests will assist us in establishing whether there has been a breach of competition law.
The CCPC has been monitoring the motor insurance industry and we know from our contacts with consumers that the sharp rise in motor insurance premiums has had a significant impact on them. We continue to closely monitor developments and will, if necessary, take action to stop specific anti-competitive practices in the motor insurance sector.
If anyone believes they have evidence of a breach of competition law in the motor insurance sector we would ask them to contact the CCPC.”