Non-Irish-based motor insurers told to disclose status

Central Bank says insurers must inform consumers if they are not incorporated here

The Central Bank’s move is designed to avoid a repeat of the chaos that followed the collapse of Malta-regulated Setanta Insurance in 2014 and Gibraltar’s Enterprise Insurance last year, leaving €100 million in unpaid claims. Photograph: Matt Kavanagh

The Central Bank’s move is designed to avoid a repeat of the chaos that followed the collapse of Malta-regulated Setanta Insurance in 2014 and Gibraltar’s Enterprise Insurance last year, leaving €100 million in unpaid claims. Photograph: Matt Kavanagh

 

Insurers authorised in other EU states who are selling motor policies here have been told by the Central Bank that they must make it clear to Irish consumers that they are not incorporated in the Republic.

This move is designed to avoid a repeat of the chaos that followed the collapse of Malta-regulated Setanta Insurance in 2014 and Gibraltar’s Enterprise Insurance last year.

The closure of these two firms left almost 90,000 policyholders without insurance and up to €100 million in unsettled claims.

The Irish regulator sent a letter last week to firms authorised in other EU member states but selling motor policies into this market, and the various brokers and agents who act on their behalf.

Intermediaries

The Irish Times

‘Fully informed’

Kevin Thompson, chief executive of Insurance Ireland, a representative group for the industry, welcomed the move. “We would support any initiative that better informs the decision-making of consumers about the purchase of their motor insurance policies,” he said.