The Competition Authority has given the go-ahead to four insurance companies to introduce a new system for estimating vehicle repairs.
Allianz Ireland, Axa Insurance Limited, Hibernian General Insurance Limited and Royal & Sun Alliance Insurance are attempting to implement the Glassmatix vehicle repair estimation system.
The internationally recognised system estimates vehicle repair based on recognised best practice and up to date prices for manufacturer parts.
The Authority was concerned that the four companies may have used the implementation of the system to fix the price of repair costs and restrict competition in the market.
However, in a statement today the Authority said the companies, which account for 65-70 per cent of the motor insurance market, "agreed to refrain from conduct that could prevent the realisation of these benefits to the consumer."
"Such conduct, if it were to occur, would dampen competition to the detriment of the consumer in the relevant markets covered by the Glassmatix system," the authority said.
Director of the monopolies division at the Competition Authority, Dr Paul Gorecki, said: "This is a good result for both consumers and business."
Dr Gorecki said: "There is the potential for consumer to gain from lower insurance premiums as the Insurance companies benefit from cost savings in the repair of motor vehicles."
"It is also important for businesses to be aware of the distinction between competitors engaging in legitimate co-operation to introduce technological developments and co-operation that breaches Competition Law," he added.
