Sector inquiry
In June 2005, the EU Competition Directorate of the European Commission announced that it was undertaking a sector inquiry into business insurance. The purpose of the inquiry was to examine the strength of competition in this market, possible distortions of competition and to provide an empirical basis for considering any future measures. The inquiry examined the provision of insurance products and services to businesses. The Commission’s mandate covered the whole scope of products. Insurance intermediation was also part of the inquiry.
Questionnaires were issued until April 2006 by DG Competition to the different market players (national associations of insurance companies and intermediaries, a cross-section of insurers and intermediaries) across the EU to gather information within the context of this sector inquiry.
On 24 January 2007, the European Commission published its interim report on the preliminary findings of its sector inquiry into business insurance asking stakeholders for comments by 10 April 2007.
BIPAR response to the European Commission’s Interim Report on DG Competition’s business insurance sector inquiry (April 2007)
On 25 September 2007, the Commission published its final report on its inquiry into competition in the business insurance sector. It expressed some concern about a possible distortion of competition arising from the alignment of premiums of lead and following insurers in the subscription market, resulting in the insured being charged the highest level of premium.
In 2008, BIPAR published its high level principles for placement of a risk with multiple insurers. Despite BIPAR high level principles, the Commission has continued to express concerns regarding the alignment of premiums.
On 10 June 2011, the Commission launched an invitation to tender for a study on co- (re) insurance pools and ad-hoc co-(re) insurance agreements on the subscription market. In September 2011, the procurement process was cancelled as the Commission did not receive any proposals for the study. On 8 October 2011, the Commission launched a new tender for the above-mentioned study. The subject of the contract is the provision of an overview and analysis of the co(re)insurance pools across the EU and of the ad hoc co(re)insurance agreements on the subscription market.
