04/07/2017

Officials Carry Out Raids At Motor Insurance Companies

A series of raids have taken place across insurance companies, brokers and representative bodies in the motor industry.

It is understood officials from the Irish Competition and Consumer Protection Commission, and the European Competition Directorate, carried out visits to main motor insurance providers as part of a probe into alleged cartel activity.

Sinn Féin's Finance spokesperson Pearse Doherty TD welcomed the news.

He said: "I welcome news this morning of raids being carried out by Competition Enforcement officials investigating possible cartel behaviour. This is good news for consumers that concerns I have voiced for some time about cartelism now are being taken seriously.

"The dramatic spikes in insurance prices across the board, and the fact that the Central Bank has accused the insurers of providing false information to it, point to sound grounds for investigation.  The industry has been warned before about price signalling.

"The news this morning will offer hope to drivers and others reliant on insurance that there is some protection for them even if it is coming very late in the day."

Sinn Féin MEP Liadh NíRiada added: "I have raised the possibility of a cartel operating within the motor insurance industry already, and I asked the European Commission to launch an investigation into the Irish insurance market to ascertain whether any anti-competitive practices are taking place. 

"Its clear that the Irish insurance market is not functioning fairly or correctly, and I hope that the investigation now underway uncovers the truth and results in a significant shake-up in motor insurance."

(LM)

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