CCPC has finally acted to investigate motor insurance price hikes – Hayes
Brian Hayes MEP today welcomed the fact that the Competition and Consumer Protection Commission (CCPC) has finally agreed to investigate the rising cost of car insurance premiums.
“It has taken some time but the CCPC has slowly realised the serious nature of the rise in car insurance premiums and has finally decided to investigate the price hikes. While it is late, the action is welcome and follows the clear suggestion by the European Commission that the CCPC is the appropriate body to investigate the reasons for the increased cost of car insurance.
“Recently, I questioned the European Commission about how we can find a solution to this issue. The new Commissioner for Financial Services, Valdis Dombrovskis, has told me that the Competition and Consumer Protection Commission (CCPC) is well-placed to investigate why premiums have risen so much and whether anticompetitive behaviour is at play here.
“Consumers are angry at this growing problem and rightly so. The relationship between insurers and consumers has been broken in recent years. There needs to be more transparency as to why premiums are being increased. And I think we need to aim for a system which allows for fairer pricing. A rise of 38% in premiums in one year does not represent fairness.
“This is a complex issue however, and it should not be a case of laying blame at the feet of insurers. Insurers are facing rising regulatory costs as well as an increase in the level of claims to be paid out.”