Insurance Ireland said today that the findings outlined in the Central Bank’s Household Property Claims Themed Inspection are not an accurate reflection of the market. The sector handled over 70,000 household claims in 2012 but the Central Bank’s report is based on just 188 claims. In contrast to the Central Bank findings, Insurance Ireland can confirm that Insurers have been very successful in their objective of achieving fair and just settlements with their customers within the terms of their policies.

Commenting on the report, Insurance Ireland CEO Kevin Thompson said “The findings issued today by the Central Bank do not present a true picture in relation to household property claims, the vast majority of which are handled very satisfactorily. We note that some of the language in the Central Bank report is vague and ambiguous, for example reference to ‘isolated incidences of potentially unfair settlements’ and ‘the Central Bank suspects that unfair settlement offers had been made in a small number of claims’- this kind of language is confusing for both the industry and our customers.  We also note the small size of the sample, and the acknowledgement in the accompanying notes that issues such as the reference to potentially unfair settlements only related to a very small number of the already small sample size.”

On the issue of retentions, Insurance Ireland says that insurers generally provide advance payments relating to the costs of repair/ reinstatement in advance of receiving final invoices from the claimant.  This is done for the benefit of the customer and allows repairs to be progressed quickly with the balance paid promptly on receipt of a final invoice.  There was no suggestion in the Central Bank’s statement that the balance was not paid when the invoices were submitted. We will work with the Central Bank to clarify how insurers work in consumers’ best interests in this area. Insurance Ireland believes it is entirely reasonable to ask a customer to provide a final invoice before a final payment is made.

On the issue of transparency, insurers have gone to enormous effort to produce their policy documentation in plain English. Policy booklets are clear and policyholders receive a reminder of policy benefits and features each year at renewal.

The Central Bank report also made reference to outsourced activity. Insurance Ireland is confident that Loss Adjusters are a highly professional group, operating to high standards.  If there have been instances where written communications between loss adjustors and customers were not clear then that will be addressed. However, Insurance Ireland also notes that while the Central Bank have analysed the practice of Insurers and Loss Adjusters, they have not analysed the practice of Public Loss Assessors.  This is an omission and suggests a lack of balance.

Kevin Thompson said “Insurers aim to achieve fair and just settlements with their customers within the terms of their policies.  We are keen to work constructively with the Central Bank to analyse this report because we know that the true situation on the ground for our members’ customers is much better than has been portrayed here.”

ENDS

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Notes to Editors:

1.    As the voice of insurance actively promoting the highest standards, Insurance Ireland represents 95% of the domestic market and 70% of Ireland’s international life insurance market. This business generates €25bn in premium income (domestic and overseas), employs 15,000 people, with thousands more in ancillary services and contributes over  €1.1 billion in tax to the Irish exchequer.      

2.    Insurance Ireland, which is the representative body for insurance companies in Ireland, was previously known as the Irish Insurance Federation.