The Competition and Consumer Protection Commission (CCPC) has today issued preliminary findings to 5 insurers, an insurance industry trade association and an insurance broker.
The preliminary findings allege that AIG Europe S.A., Allianz PLC, AXA Insurance DAC, Aviva Insurance Limited, FBD Insurance PLC, Brokers Ireland, former Irish Brokers Association, and AA Ireland Limited engaged in anti-competitive cooperation over a 21-month period during 2015 and 2016.
The alleged anti-competitive cooperation consisted of public announcements of future private motor insurance premium rises as well as other contacts between competitors, all of which reduced levels of competition between the parties.
The CCPC has said that the findings are provisional and no conclusion should be drawn at this stage that there has been a breach of competition law.
In 2016, the CCPC commenced an investigation into suspected anti-competitive practices in the provision of private motor insurance in the State.
The anti-competitive cooperation activities under investigation include ‘price-signalling’.
Price signalling occurs when businesses make their competitors aware that they intend to increase prices, in turn causing further price increases across the sector. Price signalling can happen in public, through announcements or comments on prices, or in private through direct contacts between companies.
If a business knows that their competitor is increasing prices then they may be encouraged to also increase prices, since their customers are less likely to move to their competitor.
Throughout the investigation, the CCPC gathered a substantial amount of electronic material from relevant parties, as well as extensive oral testimony and documentary evidence through witness summons hearings and meetings. With the assistance of digital forensic tools, the CCPC conducted a detailed review and assessment of all of the evidence gathered, including information in the public domain such as press articles and financial reports.
The CCPC has now issued preliminary findings to these organisations setting out its position that it has reasonable grounds to suspect that a breach of the law has occurred. The CCPC’s findings are provisional and no conclusion should be drawn at this stage that there has been a breach of competition law.
As the investigation is ongoing, no further information or comment can be provided at this time.
Source: www.businessworld.ie