ITALIAN WATCHDOG ACCUSES 39 INSURERS OF OPERATING CARTEL

Italian competition watchdog Antitrust has levied fines totalling L700bn against 39 insurance companies for operating an alleged cartel in the car insurance sector. Following a 10-month investigation Antitrust said that the companies, representing about 80% of the car insurance market, had exchanged information in order to keep premiums artificially high, with the result that there was no difference between policies offered by 15 of the largest firms. The heaviest fines were levied against SAI (L70bn), Generali (L59bn), Lloyd Adriatico (L59bn) Assitalia (L53bn), Winterthur (L41bn), Milano (L40bn) AXA (L32.6bn), Fondiaria (L33bn), Unipol (L33bn) and Toro (L31bn). Insurance company RAS, which owns Lloyd Adriatico and has been fined L95bn in total, said that it would appeal against the decision in court. Insurers’ association Ania said that other insurers would also appeal, declaring that “no cartel exists among insurers in Italy, and this will come out in the courts”. Ania added that insurers had proved beyond doubt to the Antitrust that “car insurance premiums in Italy differ greatly”.