# Competition Authority invite comments on study of insurance



## Brendan Burgess (9 Oct 2002)

The Competition Authority is carrying out a study of the non-life insurance business. They are inviting comments from interested parties on the draft terms of reference of the study.

A preliminary Consultation paper is available here

Brendan


----------



## ClubMan (9 Oct 2002)

*CA & DETE*

Submissions are invited on the following questions:

Question 1: Do you think that limiting the study to motor, employer's liability and public liability insurance is appropriate (bearing in mind that specific complaints or questions in respect of other insurance markets can still be raised with the Authority or Department as appropriate, outside the scope of this study)? If you believe that there would be particular synergies arising from the inclusion of other non-life insurance, e.g., home, commercial property, professional indemnity, personal accident and travel, in this study, please identify the nature of those synergies.

Question 2: Do you think that analysing the state of competition in a market from the perspective of barriers to entry and the degree of rivalry is the appropriate approach? If not, which alternative approach would you suggest?

<!--EZCODE ITALIC START-->_ Edited by ClubMan to tidy up formatting_<!--EZCODE ITALIC END-->


----------



## Red (11 Oct 2002)

*CA & DETE*

IMHO, This excercise is doomed to failure <!--EZCODE BOLD START-->* unless*<!--EZCODE BOLD END--> the agency agreements between Insurers and non-life Intermediaries are changed prior to the study. At the moment the Insurer can cancel an agency agreement <!--EZCODE BOLD START-->* for any reason whatsoever.*<!--EZCODE BOLD END--> 

Let's not kid ourselves here. The Intermediaries are the ones who have the evidence and information on the Insurers as to the anti-competitive and restrictive practices that are rampant in the market place. 

If this cancellation threat were removed from the table, I feel that any Intermediary that is working for his clients and not the Insurers would come forward and nail these extortionists, without the threat to his or her livelihood, once and for all.


----------

