South African insurance companies are left reeling after the Competition Commission raided the premises of eight major long-term insurance companies that are suspected of price fixing.
According to the Commission, it holds evidence that suggests certain companies, including a number of major insurance companies, colluded to fix prices and trading conditions, reports EWN.
The search and seizure operations form part of a major investigation that was first implemented in January 2021 by the commissioner.
A few of the companies suspected reportedly include Discovery Limited, FMI (a division of Bidvest Life Limited), Hollard Insurance Group and Momentum. The JSE-listed companies have stated that they are cooperating with the commission but if found guilty they could be fined 10% of their revenue, as per IOL.
Information currently at the Competition Commission’s disposal claims the companies under investigation shared information on “premium rates for risk-related products and fees for investment products.” According to the commission, this enables the companies to adjust the prices of their existing and new insurance products.
Other companies that were tagged include Old Mutual, Sanlam, and the South African National Assurance Company.