Irish Bank Probed ACE-Owned Insurer
The Irish Central Bank has investigated an insurer owned by Bermuda- and Switzerland-based ACE for mis-selling and aggressive sales behaviour dating back to 2006
Dublin-based Combined Insurance of Europe sold policies to protect against accident and illness through a nationwide network of “tied agents”.
According to a report in “The Irish Times” today [Dec.20], the company came to the attention of the Central Bank several years ago.
It was reportedly the subject of a series of complaints to the Financial Services Ombudsman.
The regulator’s investigation became public in 2010.
The company said it had taken “decisive action” to correct problems detailed in the report and a new board of directors and management team has been appointed.
Company records show that while revenues have fallen in recent years, the insurer can afford to refund the €2.15 million owing to the customers in respect of 7,917 insurance policies.
Combined Insurance had gross written premiums of €76 million in 2010 and made a pretax profit of €8.5 million in 2010, bringing retained profits to €58 million.
What did the BMA do in this regard?