Brian Hayes (Dublin South West, Fine Gael)
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Question 109: To ask the Minister for Enterprise, Trade and Innovation if his attention has been drawn to the fact that insurance companies are unfairly using their dominant position to steer business towards preferred suppliers in the case of an insurance company paying out on a claim; if he believes this to be a restrictive practice as claims are often only released once the preferred supplier has been used, thereby taking out the choice of the insurer and reducing the opportunity of business to small suppliers; if this matter has been brought to his attention and if he is satisfied that this situation represents fair trading; if he will ask the Competition Authority to look at the matter in detail; and if he will make a statement on the matter. [36401/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Regulation of the insurance industry is a matter for my colleague the Minister for Finance, and is an area in which I have no direct role. I am aware of an arrangement whereby insurance companies actively recommend certain approved repairers to their policyholders with the approved repairers selected on the basis that they meet various qualitative standards and, in return, are guaranteed a minimum flow of work. Service Level Agreements are generally entered into by the insurance company and the approved repairer.

The Competition Authority, which is the independent statutory body responsible for enforcing competition law in the State, has previously advised my Department that such arrangements do not appear to breach competition law but, in fact, appear to result in a more cost effective service being provided to the general public. It is, of course, open to any aggrieved party alleging anti-competitive practices, including abuse of a dominant position, to take a private action under Section 14 of the Competition Act 2002.