Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC seeks consultation on application of Insurance Block Exemption Regulation, (Aug 5, 2014)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) is seeking a public consultation on the functioning and future of the Insurance Block Exemption Regulation (IBER), which exempts certain agreements between companies in the insurance sector from European Union (EU) antitrust rules, the EC announced today. The purpose of the questionnaire issued by the EC is to consult stakeholders on the application and future of the IBER, which is due to expire in March 2017. Based on the contributions received, the EC will submit a report to the European Parliament and the Council by the end of March 2016. Submissions can be made through November 4, 2014.

The Commission is consulting on how the IBER is being used and on stakeholders' experience in applying it. The EC is also interested to hear about market developments and views on whether the regulation should be renewed, partially renewed, or not renewed at all. The opinions and market information gathered during the public consultation will help the Commission to carry out an impact assessment of the policy options available and to decide whether a block exemption in the insurance sector is still necessary.

The block exemption regulation exempts certain practices from the general prohibition on anti-competitive practices, provided they comply with the conditions set out in the regulation. The IBER allows insurers and reinsurers to benefit from an exemption to the prohibition of anti-competitive arrangements set forth in Article 101(1) of the Treaty on the Functioning of the European Union (TFEU). The exemption covers two types of agreements between insurance or reinsurance companies: (1) agreements with respect to joint compilations, joint tables, and studies; and (2) common coverage of certain types of risks (co-insurance or co-reinsurance pools).

The Commission has to determine whether the insurance sector differs sufficiently from other sectors that do not benefit from a block exemption regulation so that such a sector-specific antitrust regime is justified. The IBER therefore is reviewed at regular intervals and was last renewed in 2010.

The public is invited to reply to the consultation in any official EU language by filling in the online questionnaire online. Submissions can also be sent to the functional mailbox indicated in the section "Contact details" or to the postal address indicated in the same section. Submissions may include documents and URLs for relevant online content. The reply will be published in the language of submission.

News: Antitrust IndustryNewsTrends