NMa: more competition among insurers
The Netherlands Competition Authority (NMa) has agreed to a commitment of insurance companies and insurance brokers to terminate four insurance pools or to adjust them in order to have them comply with competition regulations. In an insurance pool, insurers jointly offer a product, which may form an impediment to competition among insurers. This case concerns pools for liability insurances for notaries, lawyers, accountants, and insurance agents and brokers. The commitment will offer more room for competition among insurers.
The NMa had identified possible competition concerns with regard to the liability insurance pool for notaries. This pool sold approximately 60 per cent of this type of insurance, with just one other insurer offering the same type. The NMa's provisional conclusion at that point was that competition was impeded.
In response to the NMa's report on the notary pool, the insurance companies involved made the commitment to adjust said pool, meaning that the pool would either be terminated or that its market share would not exceed 20 per cent. The insurance companies and brokers made similar commitments with regard to the pools for lawyers, accountants, and insurance agents and brokers. The NMa has accepted this commitment and is therefore not planning any follow-up to the report on the notary pool.
The Dutch Association of Insurers (VvV) has drawn up a protocol that insurers can use to determine whether a pool is compliant with competition regulations, ensuring that all future insurance pools will be compliant as well.