Thursday 19 July 2018

Brexit threatens insurance competition - AA chief

'This week the AA will highlight ongoing structural issues which it believes cause high car insurance premiums in Ireland and will call on the Government to act on recommendations made in a report 2015.' Stock photo: PA Wire/PA Images
'This week the AA will highlight ongoing structural issues which it believes cause high car insurance premiums in Ireland and will call on the Government to act on recommendations made in a report 2015.' Stock photo: PA Wire/PA Images
Samantha McCaughren

Samantha McCaughren

Competition in the insurance market is likely to shrink due to Brexit, the AA Ireland chief executive Brendan Nevin has warned.

Nevin said new British insurers would be unlikely to enter the Irish market after the UK exits the EU.

"Heretofore you would frequently find UK insurers entering the Irish market on a periodic basis," he told the Sunday Independent.

"I am guessing that will become more difficult because what they may well find is that while they are happy to deal with insurance intermediaries in Ireland, whether they are willing to set up a fully-loaded subsidiary in Ireland might be another matter."

"There is a potential risk to future competition in the market if we see that it stops market entrants coming in."

This week the AA will highlight ongoing structural issues which it believes cause high car insurance premiums in Ireland and will call on the Government to act on recommendations made in a report 2015. "The implementation of it has run into the sand a bit," said Nevin.

"What's really happened is that pretty high premiums have become normalised."

He said the average premium was €600 in 2015 and is now close to €800.

Sunday Indo Business

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