‘Insurance reform not adequate’

NEW reforms aimed at making the insurance industry more transparent are not fooling anyone, according to groups campaigning for reform.

Under the new rules, which came into force this week, insurers must remind customers of the amount they paid for their motor insurance premium the previous year and provide the total premium for each policy. The renewal notice period has also been extended from 15 to 20 working days.

Peter Boland, of Alliance for Insurance Reform, was less than impressed by the report. ‘I don’t think anyone is falling for it as major reform. It’s caused consternation among our members that such tiny reforms are getting such a big fanfare.’

The measures are part of a number of recommendations made in the Report on the Cost of Motor Insurance report signed off by former Minister of State at the Department of Finance with special responsibility for Financial Services and Insurance, Eoghan Murphy. However, in a previous interview with MoS shortly after being appointed to the role, Mr Murphy promised radical reform.

His plans for reform included greater access to insurance data, more transparency around claims data, itemised insurance premium bills, and a centralised database run by an independent body to identify serial claimants and record all claims made and paid to ensure a detailed breakdown of who makes claims and who receives pay-outs.

Mr Boland believes the existing database collated by Insurance Ireland, which is made up of several key players in the insurance industry, should be taken over by the State.

‘I don’t think anyone is falling for it’