The Office of Fair Trading (OFT) said it has provisionally concluded that arrangements entered into by Pool Re regarding terrorism reinsurance for commercial property satisfies the conditions for exemption under competition law.
Subject to public consultation, the OFT proposes to grant Pool Re's arrangements an individual exemption under the 1998 Competition Act.
It said some of Pool Re's arrangements had the effect of preventing, restricting or distorting competition and so would be subject to the Competition Act. However, the OFT said the benefits brought by Pool Re's arrangements outweighed their anti-competitive affects.
The OFT said it intended to grant an individual exemption to the arrangements as they delivered economic benefits in a way that least restricted competition.
