A consumer advocate in Iceland argues that substantial savings can be achieved in the insurance market through necessary reforms based on a three-year review.
Breki Karlsson, chairman of the Consumer Association of Iceland, has highlighted that a comprehensive three-year review of the Icelandic insurance market indicates that significant cost savings can be achieved through reforms. The association suggests a variety of improvements to the existing system, stating that consumers could save substantial amounts of money if changes are made. Karlsson notes that the current compensation systems within insurance companies are overly complex, leaving many consumers confused about their options and benefits.
The Consumer Association has been conducting an extensive examination of major insurance firms in Iceland—Sjóvá-Almennar, TM, Verði, and VÍS—resulting in the publication of findings in three separate reports. Among the key recommendations from the reviews is the need to simplify the compensation system, which is deemed unnecessarily complicated and lacking transparency. This complexity not only creates confusion for consumers but also potentially leads to inefficiencies and higher costs in the insurance market.
As the association pushes for reforms, there is a clear implication that enhancing transparency and simplifying processes could play a crucial role in fostering a more competitive environment within the insurance sector. By addressing these critical issues, the Consumer Association aims not only to benefit individual consumers but also to encourage fairer practices across the industry, ultimately leading to a healthier market that better serves the needs of the population.
