An investigation into potential anticompetitive conduct in the private motor insurance sector has led to a disagreement between the Competition and Consumer Protection Commission (CCPC) and Brokers Ireland.
The five-year investigation into price signalling, which occurs when a business informs their competitors of intended price hikes, was carried out by the CCPC.
It resulted in six major insurance companies committing to reform their internal competition law compliance programmes.
The companies include AIG Europe S.A. Ireland Branch Office, Allianz PLC, AXA Insurance DAC, Aviva Insurance Ireland DAC, FBD Insurance PLC, and AA Ireland Limited.
However, the organisations denied their involvement in a breach of competition law and there was no finding of liability.
A seventh party, Brokers Ireland refused to enter into similar commitments.
On Tuesday, the CCPC published the full report which outlines the CCPC’s reasoning for opening the investigation, the behaviours which came to light and the steps taken to secure the commitments.
Speaking about the issue, Brian McHugh, a member of the Commission with responsibility for Competition Enforcement and Mergers, said the CCPC regrets that Brokers Ireland refused to commit to internal reforms.
"This arguably calls into question the importance the organisation puts on demonstrating compliance with competition law," McHugh said.
He added that the CCPC wrote to the Central Bank of Ireland and the Department of Finance and raised concerns about the culture in the insurance industry and in particular the ability for trade associations to exert influence in regulated markets.
'Spiteful commentary'
Brokers Ireland, which formed in 2017 through the merger of the Irish Brokers Association (IBA) and another group, accused the CCPC of “spiteful commentary intended to blacken and sully the reputation of an organisation that had the courage to stand up to it”.
It said it rejected “unreasonable and unwarranted compliance demands” the watchdog sought to impose on it.
As reported in The Irish Times, the CCPC responded by highlighting that its preliminary findings, issued in September 2020, alleged that the IBA was involved in making public announcements between 2015 and 2016 about industry-wide premium trends.
It was also found to have engaged in discussions with an unnamed insurer on motor coverage increases, and facilitating contact between a number of insurers to discuss price hikes.
According to the watchdog, it remained “disappointed” that Brokers Ireland did not commit to reforming internal competition law compliance programmes.
