Latest news with #ConsumerProtectionCode
Irish Independent
19-07-2025
- Business
- Irish Independent
Your money questions: Will my travel insurance continue to automatically renew every year?
Plus what to do about skyrocketing health insurance premiums, and whether you should scrap your pension contributions in favour of the EIIS Q My travel insurance policy is automatically renewed every year, which suits me. But is there a ban coming on this, and will it apply to all types of insurance? A Under new rules being rolled out by the Central Bank as part of its revised Consumer Protection Code, consumers will no longer have their policies for pet insurance, travel insurance, gadget insurance or dental insurance automatically renewed unless they have provided their consent in advance, said Michael Kavanagh, chief executive of the Compliance Institute.
Irish Independent
16-06-2025
- Automotive
- Irish Independent
Insurance brokers accused of ‘inherently unfair' commission structure that favours higher premiums
The Alliance for Insurance Reform has questioned why most insurance brokers charge a fee that is based on a percentage of the cost of a policy. It claimed that the higher the premium a broker will secure for a consumer from an insurer, the more money the broker will make in commissions. It said broker commissions account for 'an increasing proportion of the overall cost of insurance'. It said other professions are precluded from charging a fee based on a percentage of the product or services and said this is something that also needs further examination. In a submission to the Department of Finance, as part of the public consultation on a new Action Plan for Insurance Reform, the Alliance for Insurance Reform said: 'Many brokers now charge a fee based on a percentage of the cost of the policy. This is inherently unfair to consumers as the 'worse' the premium they secure for them, the more money they will make.' The Alliance called for a detailed examination of the brokerage market in Ireland to be carried out, with strong consumer input. Commissions paid to brokers for selling motor insurance were 14pc of the premium in 2023, according to the Central Bank of Ireland's 'Private Motor Insurance Report', issued last October. A separate Central Bank report found the average motor premium is now €616. This means brokers earn €86 on the average motor premium. Both motor and home insurance costs have been rising now for months. Asked for a response, Brokers Ireland, which represents the sector, said the claim that brokerage charges account for 'an increasing proportion of the overall cost of insurance' lacks a clear evidential basis. It said the Central Bank's Consumer Protection Code mandates full disclosure of fees and commissions at the point of sale. Brokers Ireland said consumers are fully informed of how brokers are remunerated. 'Furthermore, insurance brokers typically work to reduce overall insurance costs for consumers by sourcing the most competitive and appropriate cover,' it said. It said the suggestion that percentage-based commissions are 'inherently unfair' misrepresents how insurance intermediation works. 'Commission-based models are a long-standing and internationally accepted form of broker remuneration, aligned with the interests of consumers,' it said. 'Insurance brokers are incentivised to deliver appropriate cover, value for money and ongoing service – all of which drive client retention and trust.'
