Car insurers face cartel probe over price hikes

Car insurance bosses are under investigation for breach of competition law by talking up the price of insurance premiums.

The Competition and Consumer Protection Commission says statements that predicted price rises may have actually escalated prices. Witness summonses and information requests were issued yesterday to major motor insurance companies and groups representing insurers and brokers.

Among those summoned is representative body Insurance Ireland, whose chief executive, Kevin Thompson, acknowledged this time last year that increases were possible given the continuing trends as shown by CSO figures at the time.