Several insurance companies, brokers and the insurance industry representative body were raided early today by officials as part of an investigation into alleged price fixing in the industry. It is believed that the raids were carried out simultaneously in a joint operation conducted by the Irish Competition and Consumer Protection Commission and the European Competition Directorate.

The Competition and Consumer Protection Commission started an investigation into possible cartel activity in the motor insurance sector last year, as public and political pressure mounted in the face of fast rising insurance premiums. Announcing the investigation in September CCPC chairperson Isolde Goggin said the organisation wanted to find out if any competition laws had been transgressed and if so it would take firm action to stop anti-competitive practices taking place.

Sinn Féin Finance spokesperson Pearse Doherty TD, who has been a vocal critic of the insurance industry said, "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. 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.”