Brussels, 01/03/2016 (Agence Europe) - On Thursday 17 March, the European Commission expressed the preliminary view that it was no longer any need for block exemptions in the insurance sector.
The Insurance Block Exemption Regulation (IBER) provides that agreements between insurance companies regarding the joint compilation of information and tables, as well as the joint execution of studies and the constitution of co-insurance or co-reinsurance groups, are exempted from EU rules on anti-competitive practices. The IBER will expire on 31 March 2017.
By then, the Commission will have to decide whether it will renew it in its current form, modify it or allow it to expire. At this stage, it feels that as regards compilations, tables and studies carried out jointly, the functioning of the insurance sector no longer seems to require an exceptional instrument such as a block exemption regulation. It explains that the guidelines on horizontal cooperation agreements from late 2010 provide orientations on how to assess the eligibility of cooperation of this kind and that it may, if needs be, provide additional specific orientations. This solution, it argues, would be more flexible than a block exemption regulation and easier to adapt to the changing situation.
As regards co-insurance and co-reinsurance groups, it appears that the IBER is underused and largely irrelevant. The groups are set up by a number of insurance companies to cover certain risks, such as large-scale terrorist or environmental risks. A study carried out by the Commission and information received to date in the framework of the re-examination of the IBER both indicate that only very few businesses take advantage of this exemption.
The insurance sector has declined to comment at this stage. (Original version in French by Elodie Lamer)