Brokers and underwriters in the London re/insurance market can expect to receive a questionnaire from the European Commission concerning its inquiry into the business insurance sector across the EU under its competition rules.
It is expected that underwriters will be contacted first, followed by brokers.
The Commission is investigating the insurance sector following a series of recent competition investigations - Spitzer in the US, industrial property insurance in Germany where fines of over €130m were imposed, aviation insurance in London post September 11th and insurer/broker relationships in the Netherlands.
These have led the Commission to suspect that there are distortions of trade which may be due to infringements of the competition rules.
Areas that the Commission has mentioned as likely focuses of attention are insurance associations, co-insurance arrangements, - in the UK, the London subscription market - standard policy conditions set by committees and associations, agreements with brokers and property and casualty insurance and reinsurance.
Clyde & Co are offering a free briefing session covering issues such as the likely nature of the questionnaire, the company's rights and obligations as well as prior preparation that can be undertaken.
John Milligan, a partner specialising in European Union and competition matters, said: “The questionnaires are likely to be wide ranging and detailed in the ground they will cover and the response time will be only four to six weeks. Fines could be imposed on those who fail to do so.
More seriously, this investigation could lead to specific enforcement action where there is any evidence of agreements or conduct which distort competition. Companies need to be prepared so that a swift and accurate response can be made if a questionnaire is received. We hope that these briefings will help them to do just that.”
