New motor insurance code to benefit consumers
Minister Dara Calleary has welcomed the publication of the Motor Insurance Transparency Code, which is designed to enhance trust, clarity, transparency and understanding in how motor insurance premiums are presented to consumers.
The code was launched by the Minister of State at the Department of Finance, Robert Troy. It will bring further transparency to the motor insurance market and support consumers to better understand what they are paying for and whether there are legitimate reasons for premium increases.
Key features of the code include: A new Premium Summary Statement, provided at quotation and renewal, setting out last year’s premium, the new premium, the difference, and the key factors influencing pricing (including levies, risk factors like geographical location, and license type); an Annual Market Overview Statement, providing consumers with accessible explanations of broader market conditions affecting premiums, including profit, broker commission, and legal costs.
Speaking on the publication of the code, Minister Calleary said:
“Instances where motor insurance premiums increase for no apparent reason are extremely frustrating for consumers. Many are given no explanation by their insurance provider, leaving them confused and frustrated.
“This new Transparency Code will bring clarity to the market and support consumers to understand what they are paying for and what are the reasons for premium increases.
“By arming consumers with clear information on why their premiums have increased, the code will empower them to make more informed decisions. Insurers and intermediaries will be required to explain premium changes in plain language and provide insight into individual risk factors as well as wider market trends.”
The code is voluntary and open to all insurers and intermediaries selling private motor insurance in the State to adopt, including cross border entities.
Along with an overview of their personal risk factors and relevant market trends, consumers will also receive clear guidance on how they can reduce their risk profile and potentially lower their insurance costs.