ASSICURAZIONI GENERALI/UNICREDITO (Start of full phase investigation)
PRESS RELEASE
The Italian Competition Authority initiated a proceeding against Assicurazioni Generali, one of the oldest and best known insurance companies in Italy, and the banking group Unicredito, in order to investigate an alleged restrictive agreement between the two parties.
Unicredito aggregates the Casse di Risparmio (savings banks) of Verona, Vicenza, Belluno and Ancona, Banca del Monte di Rovigo, Cassamarca, MedioVenezie Banca as well as several other companies. The banking group operates mainly in Veneto, where it is present with 324 counters.
The agreement has as its object the distribution of Generali's products in the sector of life insurance through Unicredito's counters. Such a bancassurance agreement leads to the creation on behalf of the two parties of a joint venture named "Casse and Generali Vita".
The operation's more significant anticompetitive effects concern certain provinces in Veneto, as Belluno, Vicenza and Treviso, both for the high distribution shares of life insurance products held by Generali in these provinces and for the considerable deposit-taking activities that Unicredito can perform in the same local markets. In fact, Generali, not only has a wide network of agencies, but has also concluded distribution agreements with important banking groups, certain of them are very experienced in that area, as the Casse di Rispamio di Torino, Venezia, Trieste, Banco Ambrosiano Veneto and Banca Commerciale Italiana.
The considerable strengthening of Generali's distribution capacity, which is an effect of the agreement, in addition to the high market shares currently held by the company in the markets involved, is likely to reduce competition. Furthermore, it is to be considered that the other rival insurance companies have little distribution capacity in these market.
The distribution agreement does not contain any exclusive clause, but equally might arise a high barrier to entry in the above mentioned provinces. The Authority deems, in fact, that the national framework of agreements dealing with the distribution of insurance products through the banking system presents a considerable level of stability, even in absence of set forth exclusive contractual ties, because of banks' tendency to distribute single company's products, for each insurance sector.