The European Commission has made a preliminary ruling in its investigation into whether Irish Insurers have breached EU antitrust rules in an effort to restricting competition in the motor insurance market. The ruling states that Insurance Ireland, the representative body of the major insurers, “Arbitrarily delayed or de facto denied access” to companies that wanted access to its data sharing system, Insurance Link.

EU commissioner for competition, Margrethe Vestager commented, "This prevented competitive entry of new players and thus reduced Irish drivers' choice of motor insurance policies at competitive prices.”

The ruling effectively says that Insurance Ireland stopped new entrants from getting access to shared data which meant they were unable to offer cover in Ireland. This reduced competition and allowed existing insurers to maintain high premiums and increase prices. This ruling is seen as very significant and if upheld could see insurers face fines, have to reduce premiums and perhaps even pay refunds.
 
Dermott Jewell policy and council advisor at the independent non-profit Consumers' Association of Ireland, said “The commission raises very significant and serious questions that must be fully addressed, in detail, by Insurance Ireland. The allegation that any kind of barrier to entry, into this specific area of insurance, demands immediate and urgent Government intervention and investigation by the CCPC and the Central Bank.”  

Insurance Ireland members include AIG, Aviva, Axa, FBD, RSA, and Zurich and it is estimated that between them they control some 90% of the motor insurance market under their various operating brands. The organisation said it had cooperated with the investigation and that the initial ruling remains preliminary.
 
However, the Irish government and Central Bank are also looking to make other reforms in the market to bring costs down. Premiums increased by 35% between 2009 and 2019 despite claims cost falling by 9%.

Anecdotal evidence from the motor trade also suggests that sky high premiums are deterring drivers from getting repairs to their vehicle carried out for fear of losing their non claims bonus and having to pay high excess costs. While some will get jobs done privately, without making a claim, others may continue to drive with damage, in potentially unsafe vehicles.

Clearly the motor insurance market needs major reform in order to end profiteering and bring motorist premiums down. New competition is the best way to achieve this, so it is vital that if this ruling is upheld the government takes action to open the market to new entrants.