Sector inquiry ends, but extension of block exemption is questioned

While the EC recognises the benefits that subscription market arrangements bring in terms of greater capacity, risk divestment, lower prices and better terms for clients, the Commission remains unconvinced that these benefits could not be achieved without the harmonisation of premiums that currently frequently occurs where business is written on a subscription basis. Lesley Ainsworth , a partner and EC competition law specialist at London law firm Lovells, details the EC’s view of the issue

After 27 months of information gathering and deliberation, the European Commission has issued its final report into competition conditions in the business insurance sector.