Cartel Suspected: Competition Commission Investigates 11 Insurance Companies

The Competition Commission has launched an investigation into eleven insurance companies suspected of engaging in cartel behavior. The commission allegds that these companies may have colluded to set a cap on insurance coverage for building contractors, effectively eliminating policies that offer unlimited coverage.

As a result, contractors have no option but to rely on the limited offerings of these eleven targeted companies.

The investigation is focusing on the sale of insurance policies designed to protect contractors against third-party injuries and property damage incurred during construction projects.

The Commission is suspecting that these insurance companies have undermined fair competition — the essential rivalry that should exist among independent businesses.

Consequently, contractors may find themselves with no alternative but to accept limited coverage options in the market.

If the allegations are substantiated, such an arrangement would constitute a violation of Article 41 of the Competition Act.

The Commission held the authority to impose financial penalties of up to 10% of the annual revenue of each company found in breach of the law.

As part of the inquiry, a search was conducted at the offices of the Mauritius Insurers Association in June.

This association is suspected of potentially facilitating the cartel’s operations.

Additionally, the Competition Commission is appealing to anyone with information regarding the alleged collusion in this case to come forward.

Source: Defi Media