The European Commission has opened an investigation into Insurance Ireland to determine if it's in breach of competition law.
Some insurance companies can currently access a "data pooling system" to make sure there's no potentially fraudulent behaviour by claimants.
The Commission is looking into whether the terms of access for other companies who don't already have access, puts them at a competitive disadvantage.
Insurance Ireland insists its practices are fully compliant with competition law.
In a statement it's said:
Insurance Ireland understands that the investigation is focused on the InsuranceLink database, which is a secure database that holds claims information as a tool to assist in fraud detection. InsuranceLink is accessed by Insurance Ireland members and non-members and has been in operation since 1988.
Insurance Ireland is cooperating fully with the European Commission in its enquiries and is confident its practices are fully compliant with competition law."