INSURERS have been heavily criticised by the Central Bank for the way they handle flood claims from householders.
Floods in recent years prompted thousands of homeowners to make claims to their insurers.
But a probe by regulators has found huge shortcomings in how these claims were handled.
The Central Bank’s director of consumer protection Bernard Sheridan said: “We are concerned by the findings of this inspection which has identified a lack of controls when using third parties to handle claims, a lack of transparency around the claims retention policy and policy terms that consumers need to be aware of at time of purchase and when making a claim.”
The investigation found that incidences of potentially unfair settlements.
Also unveiled was a lack of transparency around the practice of insurers retaining some of the agreed settlement - typically 30pc - until reinstatement has been completed.
There were also major question marks over the appropriateness of building insurance sold to some apartment owners.