asked the Minister for Industry and Commerce if his attention has been drawn to the fact that certain sellers of car insurance have preferential terms available to them from the insurance industry (details supplied); and his views on whether this constitutes unfair trading.
Written Answers. - Car Insurance.
74.
I understand that motor insurance underwriters maintain basic premium rates for their different classes of risk and that these rates are not varied according to the seller of insurance. However, some insurance companies do underwrite group schemes which can result in a lower net premium for the client. Such schemes may be operated through any of the categories of insurance intermediary in the market place, including individual brokers. Such group schemes have been in existence for many years and it is not considered that they constitute unfair trading.
The maximum commission rate for motor business is 5% and no insurance company may pay in excess of that rate to any insurance intermediary.