The Competition and Consumer Protection Commission has written to Insurance Ireland, the representative body for the insurance sector here, warning against any cartel-like action on the part of insurance companies here.

The Irish Independent reports this morning that the commission’s action is in response to a recent media briefing by the head of Insurance Ireland, Kevin Thompson, who said that car insurance rates were set to rise by 25% in 2016.

"We can only see further upward pressure on premiums," he said at the time.

Asked about the purpose of the letter, a commission spokesman said: “Statements of this nature may result in a degree of unspoken co-ordination of pricing decisions and therefore may constitute a form of price signalling to industry participants.”

Chair of the commission, Isolde Goggin added: "The commission took the decision to write to Insurance Ireland to seek clarification around their actions and reported comments.

"The commission is acutely aware of the impact of increasing costs on consumers and we will continue to closely monitor developments and will, if necessary, take action to stop specific anticompetitive practices."