Insurance giant Axa has been fined €675,000 by the Central Bank for breaches of the consumer protection code.
The firm accepted it did not comply with measures to resolve complaints laid down in the Consumer Protection Code.
The Central Bank said the size of the fine reflected the fact that more than 58,000 claims seeking additional information and advice over a period from January 2008 to April 2012 were not processed in accordance with prescribed competency codes and the need to ensure any penalty acted as a suitable deterrent. Balancing that was the action taken by the insurer to rectify the breaches when they became known and the level of co-operation with the investigation. Axa secured a maximum 30 per cent discount for early payment of the penalty.
Central Bank director of enforcement Derville Rowland said the competency codes were introduced to establish minimum professional standards for financial service providers, especially in dealing with consumers.
“Regulated entities must ensure that staff who provide advice to consumers on retail financial products hold a recognised qualification or have gained an appropriate level of experience through working in the industry,” she said.
The breaches emerged during onsite inspections at the group’s Dublin headquarters and a branch in Derry in late 2014. They relate particularly to the team processing motor and property claims.
