“The CCPC is not investigating a breach of competition law in the public liability insurance market.”
Those were the words of Ireland’s Competition and Consumer Protection Commission (CCPC) when it clarified that its current activity is limited to carrying out a market study – the aim of which is to examine how both the market and competition within it operate, and whether any competition practice or method affects pricing levels.
“The CCPC is independent in the exercise of its enforcement functions,” explained the Irish agency. “It cannot be directed to investigate suspected breaches of competition law in any particular sector or by any particular set of economic operators.
“The commencement of this study follows a ministerial request from the Minister for Business, Enterprise and Innovation, Heather Humphreys TD.”
It added that the market study is in the early stages, and that the CCPC will undertake an extensive process of engagement with all relevant stakeholders once the terms of reference have been finalised.
Offering his take on the matter, Alliance for Insurance Reform director Peter Boland stated: “Our members have struggled to understand how their liability premiums have rocketed in the last five years while there has been no corresponding increase in either claims or awards.
“Research we carried out in May showed that, on average, liability policyholders experienced an average increase of 204% in their premiums over the last five years, closing businesses, making many more unviable and threatening many organisations in the Irish voluntary and community sectors. We would welcome any additional transparency that might give an insight into why this happened.”
Meanwhile, Boland’s camp is also calling for swift action.
“Further we urge the government to move much quicker to publish other long-promised transparency measures on liability insurance like the National Claims Information Database and the Key Information Report on Employer and Public Liability Insurance Claims due at the end of last year,” he asserted.
“Equally, we would urge the CCPC, if they are progressing this investigation, to include employer liability and well as public liability.”
