Central Bank slaps record €3.3m fine on insurance firm
Published 19/12/2011 | 11:42
THE CENTRAL Bank has slapped a €3.35m fine on the Combined Insurance Company of Europe Ltd after it found more than 20 breaches of its regulatory code.
According to the bank, the penalties reflected the importance it places on consumers and the code protecting them.
The bank expects the company will have to repay over €2m to customers who bought policies from it although it is not currently selling new business.
“This is the largest fine issued by the Central Bank and reflects the seriousness with which we view fundamental regulatory failures including inadequate systems and controls which cause large scale non-compliance with our regulatory requirements,” the bank said in a statement.
“This enforcement action relates to consumer protection failures and the penalty imposed demonstrates that we will not tolerate breaches of this nature.”
The bank added that insurance companies can cause significant consumer detriment through mis-selling, through their remuneration arrangements and having inadequate systems and controls.
“The level of consumer detriment in this case arising from the firm’s non-compliance and behaviour, will not be tolerated by the Central Bank.”