AIG, Allianz, Axa, Aviva, FBD and broker AA Ireland entered into legally-binding agreements with the Competition and Consumer Protection Commission (CCPC) to revise their internal compliance systems.

The agreements show that the commission will end its investigations of the businesses and avoid taking any legal action under the Competition Act, so long as the firms honour their deals.

The CCPC said it could only have sought a court declaration that the insurers were in breach of competition law and an order forcing them to end the practices that led to the investigation.

In light of the costs of court action, which would have had a similar outcome, it decided not to take legal action.

Under the Competition (Amendment) Bill, 2021, which could be on the statute books by the end of the year, the commission would be able to fine companies following investigations.

Brokers Ireland, which refused to sign the same deal as the companies, will nevertheless face no court action.

Its chief executive, Diarmuid Kelly, said the CCPC had not found any competition law breaches by the Irish Brokers’ Association, which his organisation took over in 2017.

Regulators had investigated “price signalling” – the practice of rival companies informing one another in advance of increasing charges, potentially leading to increases across their industry.

Motor insurers’ announcements of pending increases between 2015 and 2016 led to the inquiry. All companies denied any anti-competitive behaviour.