European Commission closes investigation
The European Commission has today announced that it has closed its review of the International Group's claims-sharing and reinsurance arrangements. The International Group has cooperated fully with the European Commission throughout the investigation and welcomes the Commission's decision to close the case.
The investigation was opened by the European Commission in August 2010 following the expiry of the second 10 year exemption for the International Group Agreement (IGA) granted by the Commission. The reform of EU competition law procedures in 2004 meant that it was not open to the International Group to seek a further individual exemption for the IGA.
Even though the European Commission has decided to close its investigation, the International Group plans to make some amendments to the IGA.The International Group
is finalising these and details will be published in due course.Press Release from European Commission
Antitrust: Commission closes investigation in P&I Clubs case
The European Commission has closed its antitrust investigation into certain provisions accompanying claim-sharing and joint reinsurance agreements in the marine insurance sector.
P&I Clubs are mutual non-profit making associations that provide Protection & Indemnity insurance - a type of direct marine insurance - to their members, the ship owners.
The investigation focused on the International Group Agreement (IGA) and the Pooling Agreement between the P&I Clubs that contain rules on the sharing of insurance claims and joint reinsurance as well as rules on the contractual relationships between the P&I Clubs and their members. The aim of the procedure was to examine whether certain provisions of the agreements lessened competition between P&I Clubs and/or restricted, to a certain extent, the access of commercial insurers and/or other mutual P&I insurers to the relevant markets.
After opening proceedings in August 2010(IP/10/1072),
the Commission conducted a
market investigation with ship owners, brokers and commercial insurers. The market
investigation was not sufficiently conclusive to confirm the Commission's initial concerns.
The agreements concluded within the International Group of P&I Clubs were previously
exempted from the competition rules of the European Union by a Commission Decision of
12 April 1999(IP/99/230
). The exemption expired on 20 February 2009.
Source UK P&I
You may also be interested in:
The UK P&I Club, a leading provider of P&I insurance and other services to the international shipping community, confirmed it has won approval from the Netherland’s financial regulator for a licence for its Rotterdam-based subsidiary UK P&I Club N.V. (UKNV).