New research from the Central Bank shows that price was the most important factor for consumers when choosing their motor insurance.
The consumer research reveals that 79% of respondents said that price was the most important factor that influenced their last purchase of motor insurance.
49% said that the location of the insurer mattered to them, although less than half of these indicated that a location outside Ireland might change their decision.
Meanwhile, consumers' knowledge of the identity of their motor insurance company was mixed with 59% of respondents stating that they checked the name of their insurer on their insurance quotation document.
76% said they knew the identity of their motor insurer, but of these, 25% stated the name of a retail intermediary, indicating some degree of misunderstanding as to who their insurer actually was.
The research also showed that satisfaction with the service of current motor insurer was high and the majority stayed with their current provider at their last renewal.
But the Central Bank's thematic inspection of retail intermediaries, which act as Managing General Agents (MGAs) on behalf of motor insurers, showed that consumers were not sufficiently made aware by the MGA of the name of their insurer and its country of incorporation.
The Central Bank said that MGAs must amend their policy documentation to make it clear to consumers who their insurer is and where their insurer is located - its country of incorporation.
MGAs must also formalise contingency plans to better protect consumers in the event of an insurer exiting the Irish market, the bank added.
The Central Bank's Director of Consumer Protection, Gráinne McEvoy, said that consumers have a right to know exactly who they are buying insurance from and should be provided this information in a straightforward and simple way that avoids creating confusion or misunderstanding.
"This inspection shows that there is room for improvement and, as a result, we have required specific actions to be taken to ensure consumers’ interests are better protected," she added.
