Explainer - Does the Central Bank have any control over motor insurance price increases?
No. The Central Bank has no role in setting or capping premiums as that would be against EU law. The price of policies is a commercial decision for each insurance company.
Increases in annual premiums can be driven by higher claim volumes and payments or by other market forces. The Central Bank does, however, have a responsibility to protect customers of insurance firms.
Our first goal is ensuring that insurance firms are safe and solvent – so they can pay policyholders in the event of a claim. We also make certain insurers treat consumers fairly. For example, there are rules covering the information that an insurance company must provide to you when buying or renewing insurance and the advertising rules which they must follow. We also regulate how firms handle claims and complaints from consumers. Insurers and brokers must carry out sales in accordance with the Central Bank’s Rules, which are known as codes of conduct, and must employ sufficiently qualified staff.
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