Central Bank Issues Largest Fine Against Insurance Firm

The Central Bank of Ireland has said it has issued its largest ever fine against a major insurance company over breaches of "regulatory requirements".

The fine was issued to the Combined Insurance Company of Europe Limited, a regulated financial services provider, which it judged to have breached the 2006 Consumer Protection Code, the European Communities Regulations and the 2006 Minimum Competency Requirements.

A statement from the Central Bank said the breaches identified in the case constituted some of the "gravest and most persistent breaches" of standards the Central Bank had come across since the introduction of the code.

The bank's Director of Enforcement, Peter Oakes said: "This is the largest fine issued by the Central Bank and reflects the seriousness with which we view fundamental regulatory failures including inadequate systems and controls which cause large scale non-compliance with our regulatory requirements.

"This enforcement action relates to consumer protection failures and the penalty imposed demonstrates that we will not tolerate breaches of this nature."

The Consumer Protection Code was introduced by the Central Bank in 2006, and sets out the standards the Central Bank expects regulated entities to comply with in their dealings with consumers.

The Central bank said protection of consumers in their dealings with financial entities is one of the Central Bank’s statutory objectives and a key priority.

"We have said previously where serious breaches of regulatory requirements designed to provide that protection occur, regulated entities can expect that those breaches will be investigated fully and followed through to conclusion," a spokesman added.

(DW)