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24 March 2016
Client Alert | Competition | EU Regulatory | Insurance
On 17 March 2016, the European Commission issued its preliminary report on the functioning of the Insurance Block Exemption Regulation (Regulation n° 267/2010, the IBER). This Regulation exempts certain practices from the general prohibition of anticompetitive behaviour set out in Article 101 TFEU, provided they meet the requirements defined by the Regulation.
Two types of restrictions are exempted: (i) agreements between insurers or reinsurers to exchange information in the form of joint compilations, tables and studies; and (ii) the common coverage of certain types of risks by means of coinsurance pools or coreinsurance pools.
The IBER entered into force on 1 April 2010 and is bound to expire on 31 March 2017. Ahead of its expiry, the Commission engaged in 2014 a consultation process, asking stakeholders for their views on the efficiency and the viability of the IBER. National competent authorities as well as insurance sector operators and consumers contributed to this process. On the basis of these contributions, the Commission issued its report on the functioning of the IBER and notified it to the European Parliament and the Council of the European Union.
In this report, the Commission raises two key questions: first whether cooperation among insurers is needed in view of the characteristics of the insurance sector, and second, whether such cooperation still requires a specific legal instrument in the form of a block exemption regulation.
Although the Commission acknowledges the enhanced need for cooperation in the insurance sector, it takes a clear stand against the renewal of the IBER.
This client alert presents the main elements identified by the Commission, its conclusions, as well as the next steps on the IBER.
Please click on the file below to dowload the full Client Alert.
