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INSURANCE ADJUSTERS' FEE SCALE


PRESS RELEASE



PRESS RELEASE


THE COMPETITION AUTHORITY HAS BEGUN AN INVESTIGATION INTO THE AGREEMENT BETWEEN ANIA AND INSURANCE ADJUSTERS


At its meeting on 15 July 2004, the Competition Authority resolved to institute an investigation pursuant to section 14 of the Competition Act into ANIA - Associazione Nazionale fra le imprese assicuratrici (national association of insurance companies) and the majority of the insurance adjusters' organisations working throughout the whole of Italy, namely: AICIS (Associazione Italiana Consulenti Infortunistica Stradale), SNAPI (Sindacato Nazionale Autonomo Periti Industriali), SNAPIA (Sindacato Nazionale Periti Industriali Assicurativi), SNAPIS (Sindacato Nazionale Autonomo Periti Infortunistica Stradale), UIPA (Unione Italiana Periti Assicurativi) and CNPI (Consiglio Nazionale Periti Industriali).

The purpose of the investigation is to ascertain whether the two-year agreement concluded by these associations, which became effective on 1 March 2003 and was notified to the Competition Authority by Isvap on 4 May 2004, is in breach of competition legislation.

The agreement set the fees for the insurance adjusters' services to the insurance companies and the formalities and nature of these services. The substance of the agreement could therefore cause it to interfere with competition between the insurance companies by enabling them to standardise what is a major cost item, as well as competition between the insurance adjusters themselves by charging the same fees for their services.

The Ania/adjusters' organisations agreement covers the whole of Italy because it has been signed by the associations representing virtually every insurance company and every insurance adjuster, such that it falls within the scope of Article 81 of the EC Treaty regarding the prohibition on agreements restricting free competition.

It should be recalled that this agreement was concluded pursuant to section 14(2) of Law 166 of 17 February 1992 instituting the national register of insurance adjusters. This provision stated that for the services provided by adjusters to insurance companies, "the fees shall be established by agreement with the most representative adjusters' associations nationwide and by the association representing the insurance companies, and shall be adopted by decree of the Minister of Trade and Industry (today by the decision by Isvap)".

The investigation will therefore ascertain whether, and to what extent, this sectoral legislation has provoked or facilitated the conduct under investigation, and whether this agreement can be wholly or partly put down to that statutory provision, in which case it will decide whether that provision is compatible with articles 10 and 81 of the EC Treaty.

For according to a recent judgment handed down by the European Court of Justice, in the event of “any corporate conduct in breach of Article 81(1) EC which is imposed or facilitated by any provision of national legislation that legitimises or enhances the effects, the national competition authority responsible for ascertaining compliance with Article 81 EC is under an obligation to disapply that domestic provision”.

Lastly, it should be emphasised that after the commencement of the investigation, Ania immediately and formally withdrew from the agreement forming the subject matter of the investigation.

The investigation will be completed by 30 September 2005.

Rome, 30 July 2004