ISME calls for insurance broker regulations after CA report

Small business organisation ISME has expressed its alarm at the findings of a new Competition Authority report into the charging structures by insurance brokers.

The report confirmed evidence by the CA that additional costs are being loaded onto consumers and small businesses through inflated commissions.

ISME has also claimed that the rule requesting brokers to disclose their fees to customers is being ignored on a widespread and regular basis.

According to ISME Chief Executive, Mark Fielding: "A number of insurance companies have outlined that premiums have been reducing over the last number of months, but the indications are that in some cases the customers are not seeing the reductions because the retail broker is effectively pocketing the difference."

The organisation has called on the Irish Financial Services Regulatory Authority to introduce mandatory regulations compelling brokers to issue their customers with the insurance companies' premium invoice before the commission payment to the broker.

This, ISME claims, will highlight the actual rate of commission charged to the client.