CCPC confirms price-fixing behaviour by the insurance industry - Pearse Doherty TD
Sinn Féin spokesperson on Finance Pearse Doherty TD has responded to preliminary findings of an investigation by the Competition and Consumer Protection Commission which has found that AIG, Allianz, AXA, Aviva, FBD, Brokers Ireland and AA engaged in anti-competitive co-operation over a 21-month period during 2015 to 2016.
Speaking today, Teachta Doherty said that the reputation of the insurance industry was in tatters.
“Today’s findings by the Competition and Consumer Protection Commission are a damning indictment of an insurance industry that's reputation lies in tatters.
“The CCPC has today announced that the main players in the Irish insurance market engaged in anti-competitive co-operation to hike prices in 2015 and 2016. These finds are not surprising and I have been raising these concerns for a number of years.
“In 2015 and 2016, when this cartel-like behaviour was taking place, the average cost of a motor insurance premium rose by 21%. Year after year, insurance companies and Fine Gael politicians have blamed these price hikes on the cost of claims.
“They never told the public, their customers, or the Oireachtas Finance Committee that it was in fact driven by anti-competitive price fixing.
“This comes only a week after the Central Bank found the same industry was engaged in discriminatory pricing.
“The CCPC must now complete its work; with necessary sanctions imposed on these insurance companies.
“The government must also now implement the crucial sections of my Consumer Insurance Contracts Act that they have blocked at the request of the insurance industry since it became law last year.”