We wish to advise that Zenith Insurance plc (ZIP), part of the Markerstudy Group has decided to cease writing motor business in Ireland through all of its Irish MGAs (Managing General Agents). In respect of Bump Insurance, this means that no more policies will be written by us on behalf of this particular Insurer from February 2017 onwards. ZIP’s decision to withdraw is due to a number of factors, as stated: “…. increasing regulatory burden, a lack of engagement with us by Irish industry bodies, which we believe creates a market disadvantage for us and our partners and finally the uncertain legislative environment. Our decision is not a reflection on the performance or professionalism of Bump Insurance”.
The combined effect of these factors is to make Ireland an unattractive territory in which to underwrite motor insurance business and the effort and resources required to deal with the challenges is not justified by the level of premium written in Ireland by ZIP, which is small relative to the Markerstudy Group’s overall annual premium income of over £500m sterling – most of which is written in the UK.
The decision by ZIP to leave the Irish Market is disappointing for Bump and also for Consumers, because it reduces the choices available to them. Greater effort should be made to overcome the barriers to entry for financially strong companies to the Irish market. In addition, the inability to trade on a level basis requires detailed examination and remedy in the interests of Consumers.
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