On 4 September 2015, Insurance Ireland issued a press release warning of the potential impact of the recent High Court judgment regarding Setanta Insurance (The Law Society of Ireland v The Motor Insurers' Bureau of Ireland (MIBI)  IEHC 564). Insurance Ireland's view is that the net effect of requiring the MIBI to cover claims brought by/against drivers who held policies with Setanta include that (a) all motor insurers will now effectively be underwriting the least prudent insurer in the industry, with knock-on implications for solvency and capital considerations, (b) liquidation may now be a viable option for an imprudent insurer to pass off losses to others insurers in the market and (c) a risk of insurers exiting the Irish market may have been created. Separately, Insurance Ireland issued a press release regarding factors contributing to increased premiums. This identifies measures which may assist to halt the increasing the cost of insurance claims including reduction of legal costs, acting to deter fraudsters and (for motor insurance) amending legislation to clarify the roles of the MIBI and the Insurance Compensation Fund.
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Insurance Ireland comments on motor insurance issues
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