The Competition Commission has eight insurance companies in its sights for collusion

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The Competition Commission has eight insurance companies in its sights for collusion - The companies are BrightRock Life, Discovery, FMI (a division of Bidvest Life) Hollard, Momentum, Old Mutual Insure, Professional Provident Society and Sanlam

it has “reasonable grounds” to suspect that eight insurance companies have participated in collusive practices to fix prices and trading conditions in South Africa.

The suspected collusion is in respect of fees for investment products such as retirement annuity and premiums for risk related products, namely, life insurance cover for dread disease, disability and life and funeral assistance benefits. This is in contravention of section 4 of the Competition Act, which prohibits any agreement, concerted practice or decision by an association of competitors that involves directly or indirectly fixing a purchase or selling price.

 

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