Competition Commission raids Discovery, Hollard, Momentum, Old Mutual, and more
The commission says there are reasonable grounds to suspect the insurances companies have engaged in collusive practices to fix prices
Eight insurance companies offices were raided by the Competition Commission Photo: iStock
The Competition Commission has raided the offices of at least eight insurances companies operating in Gauteng, KwaZulu-Natal, and the Western Cape provinces for alleged collusion.
The commission says there are reasonable grounds to suspect the insurances companies have engaged in collusive practices to fix prices in respect of fees for investment products, including retirement annuities and premiums for risk related products, in contravention of the Competition Act.
The insurance companies include BrightRock, Discovery, Hollard, Momentum, Old Mutual, Professional Provident Society and Sanlam.
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The commission says according to the information at its disposal, the companies under investigation share information on premium rates for risk-related products and fees for investment products, which enables them to adjust the prices of their existing and new insurance products.
“The search and seizure operations are being conducted as part of an ongoing investigation that was initiated by the Commissioner in January 2021.
“During the search, the commission will seize documents and electronic data, which will be analysed together with other information gathered to determine whether these firms have contravened the Act,” the commission said.
The commission added that companies under investigation operate within the long-term insurance market.
“Their activities within the long-term insurance market, include the offering of investment and risk-related insurance products. In terms of section 48 of the Act, the Commission is authorised to enter and search premises and seize documents that have a bearing on its investigation.
Commissioner Tembinkosi Bonakele said the search and seizure operations are conducted with due regard to the rights of all those who have been affected
“The search and seizure operation is part of the routine process of evidence gathering and we urge all involved to allow the investigation to run its course. The Commission will at an appropriate stage reveal the outcome of the investigation,” Bonakele said.
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