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Axa Insurance fined €675,000 by Central Bank

Written by Sim Pinder, on 28th Jul 2016. Posted in Financial

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The Central Bank has imposed a fine of €675,000 on AXA Insurance Limited due to breaches in respect of the Minimum Competency standards and Consumer Protection Code.

In November 2014, the Central Bank’s Consumer Protection Supervision Division conducted an on-site inspection of Axa's branch office in Derry and Head Office in Dublin. 

The inspection focused on Axa's claims department, in particular on the team whose main function is to process motor and property claims.

Members of that team operate a ‘prescribed script function’, which means that they must operate within a narrow and rigid set of criteria and according to a prescribed script and routine. 

According to the Central Bank's statement during the course of the inspection, a number of suspected breaches of the MCR, the MCC and the 2012 Code were identified. 

The breaches have been accepted by Axa as part of the Settlement Agreement.

Commenting on the ruling the Central Bank’s Director of Enforcement, Derville Rowland, said, “The purpose of these standards is to ensure individuals acting for or on behalf of regulated entities in the provision of advice and associated activities, have a minimum acceptable level of competence to deal with consumers. In accordance with the standards, 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.”

“Non-adherence to the Minimum Competency standards can affect the quality of service provided to consumers and creates an unacceptable level of risk to consumers in their dealings with regulated entities by, amongst other things, exposing them to unqualified and/or inexperienced staff.” He added. 


Source: www.businessworld.ie

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