FIANNA Fáil TD Willie O’Dea welcomed the publication of the new Motor Insurance Transparency Code, which aims to enhance trust and transparency around how motor insurance premiums are presented to consumers.
The code will bring further transparency to the motor insurance market and support consumers to better understand what they are paying for and whether there are legitimate reasons for premium increases, Deputy O’Dea said.
Key features include a new premium summary statement setting out last year’s premium, the new premium, the difference, and the factors influencing pricing (including levies and risk factors like geographical location, and license type).
“Instances where motor insurance premiums increase for no apparent reason are extremely frustrating for consumers. Many are given no explanation by their insurance provider, leaving them confused and frustrated,” Deputy Willie O’Dea.
“This new transparency code will bring clarity to the market and support consumers to understand what they are paying for.
“By arming consumers with clear information on why their premiums have increased, the code will empower them to make more informed decisions. Insurers and intermediaries will be required to explain premium changes in plain language and provide insight into individual risk factors as well as wider market trends.”
The code is voluntary and open to all insurers and intermediaries selling private motor insurance in Ireland to adopt, including cross border entities. Along with an overview of personal risk factors and market trends, consumers will also receive guidance on how they can reduce their risk profile and lower insurance costs.