European insurers face scrutiny from Brussels amid criticism of controversial bonus payments

The European Commission published 24 January 2007 its interim report on the competition inquiry into the business insurance sector, which shows evidence of fragmented markets and highlights factors that may adversely affect competition. The sector inquiry, launched in June 2005 (see IP/05/719), aims at ensuring a better understanding of the functioning of the sector. This would ultimately allow the Commission to detect distortions of competition that, where appropriate, could then be tackled through antitrust enforcement, either by the Commission or by the Member States' competition authorities. Before reaching final conclusions due to be published in September 2007, the Commission invites all stakeholders to submit their views and observations on the preliminary findings. The consultation period lasts until 10 April. The Commission is also organising a public hearing in Brussels on 9 February to discuss this interim report.

European Commission: Press Release: IP/07/74: Competition: Commission publishes interim report on business insurance inquiry; public hearing in February http://europa.eu/rapid/press-release_IP-07-74_en.htm

European Commission: DG Competition: Sector inquiries: Financial services http://ec.europa.eu/comm/competition/antitrust/others/sector_inquiries/financial_services/

---