Motor Insurance Transparency Code launched in Ireland
The Irish government has launched the Motor Insurance Transparency Code to compel insurers to explain premium increases.
The voluntary code is intended to improve transparency in motor insurance through the introduction of new premium summary statements.
Issued at quotation and renewal, the statement will set out the new premium compared to the previous year, with explanations for any variations. It will also clearly state personal risk factors and guidance on how to lower premiums by reducing risks.
Developed by industry stakeholders in conjunction with the Department of Finance and the Central Bank of Ireland, the code is open to any insurance company selling private motor insurance.
Further transparency
Robert Troy, minister of state for financial services, credit unions and insurance, said: “This new transparency code is a first of its kind for Irish consumers. It will bring further transparency to the market and support consumers to know what they are paying for, and if there are legitimate reasons for why premiums have increased.
“By insurers and intermediaries explaining premium changes in plain language and providing insight into individual risk factors as well as wider market trends, the code will empower consumers to make more informed decisions.
“It is my hope that this code will enhance switching behaviour and arm consumers with the right information to receive a better motor insurance outcome.”
Greater trust
Tánaiste and finance minister Simon Harris added: “The implementation of this code will help enhance trust, clarity, and transparency across the motor insurance market and consumers will benefit from clear, consistent, and meaningful information about how their premiums are calculated and information on what practical steps they can take to reduce their risk.
“The code has been designed to enhance transparency while ensuring non-disclosure of commercially sensitive information. Implementation of the code has commenced on a phased basis, and consumers can expect receive the relevant information towards the end of the third quarter of this year.”
