Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC publishes Insurance Block Exemption functionality report, (Mar 17, 2016)

By Greg Hammond, J.D.

Sector-specific block exemptions are no longer needed for certain types of cooperation in the insurance sector, according to a report issued today by the European Commission (EC). The report focuses on the functionality of the Insurance Block Exemption Regulation (IBER).

The IBER exempts, under certain conditions, some types of cooperation in the insurance sector from EU antitrust rules. The EC conducted a review of the IBER to determine whether the regulation should be renewed in its current form or modified prior to its expiration date—March 31, 2017.

According to the report and working document, the EC preliminarily determined that sector-specific block exemptions are no longer required for agreements between insurers concerning (1) joint compilations, tables and studies and (2) co-insurance or co-reinsurance pools. In particular, the insurance industry no longer needs an instrument like a Block Exemption Regulation for joint compilations, tables, and studies because the EC’s “Guidelines on horizontal cooperation” offers guidance on how to assess the admissibility of this type of cooperation. In addition, the IBER seems to be of limited use and relevance with regard to co-reinsurance pools, the EC found. The study identified less than 50 institutionalized pools that are potentially covered by the IBER exemption, and a significant proportion of potential beneficiaries disclosed that they consider themselves outside the scope of the IBER.

The EC will organize a meeting for April 26, 2016, to discuss the report’s findings with stakeholders. In addition, the EC has commissioned two additional studies based on issues stakeholders have raised during the initial consultation process, including: (1) supply-side substitutability in insurance; and (2) different forms of co-reinsurance available on the market and their impact on competition.

News: Antitrust