BoI pulls out of motor insurance sector

BANK of IRELAND is pulling out of the Irish motor insurance market but says no forced job losses will result following the closure of its Premier Direct Insurance motor section.

The 30 people employed in the section will, according to the company, “be offered alternative positions within the Bank of Ireland Group”.

IBOA general secretary Larry Broderick last night instructed his members not to co-operate with the bank’s proposals. “We are looking for an immediate meeting with management of this move which has serious implications for our members right across Bank of Ireland.”

Bank of Ireland Insurance Services Limited (‘BIIS’) trading as Premier Direct Insurance has entered into conditional agreements with Hibernian General Insurance Limited and Eagle Star Insurance Company (Ireland) Limited under which they will acquire the right to offer terms at renewal to holders of Premier Direct Insurance motor policies which they currently underwrite.

BIIS head Alan Daly said: “The general insurance business is a key strategic business for Bank of Ireland and offers significant growth potential in its core product lines such as home insurance. The strategic review determined our motor insurance intermediary business as non-core in Ireland. We will be communicating with our customers regarding changes in our business.”

Bank of Ireland said that the completion of both transactions, which involve cash payments to BIIS, is expected by end June 2004.

“From the completion date(s) of both transactions, all policy renewals, administration and servicing will be managed by Hibernian and Eagle Star respectively,” BoI said.