AGCM

PRESS RELEASE

INSURANCE: ANTITRUST AUTHORITY TO LAUNCH INVESTIGATION INTO FOUR INSURANCE COMPANIES FOR POSSIBLE COLLUSION IN INSURANCE PROVISION FOR CAMPANIA HEALTHCARE FACILITIES (ASL AND AO)


The procedure shall determine whether HDI-Gerling Industrie Versicherung AG, Faro Compagnia di Assicurazioni e riassicurazioni S.p.A., Navale Assicurazioni S.p.A. and Primogest S.r.l. set up agreements restricting competition during at least 19 competitive bidding invitations for the contracting of insurance services for ASLs (local healthcare companies) and hospital firms (AO) in Campania between 2003 and 2009.

In a meeting on May 06th, 2010, the Autorità Garante della Concorrenza e del Mercato decided to launch investigation to determine whether HDI-Gerling Industrie Versicherung AG, Faro Compagnia di Assicurazioni e riassicurazioni, Navale Assicurazioni and Primogest set up agreements restricting competition during at least 19 competitive bidding invitations for the contracting of insurance services for ASLs (local healthcare companies) and hospital firms in the Campania Region.
According to the Antitrust Authority, the initial evidence provides reason to suspect that Gerling, Navale and Faro colluded with Primogest (as a multi-company agent) to suppress competitive dynamics during the competitive bidding process in order to divide up the healthcare facility insurance market for the coverage of civil liability towards third parties for damages suffered during the course of medical activities and civil liability towards employees.
In the context of bidding invitations published between 2003 and 2009, the collusive behavior ranged from offering bonuses for conferring other lots to competing companies in order to divide up the services, to refraining from the submission of proposals so that no more than one company made an actual bid, taking turns submitting proposals so that contracts were won due to the absence of competing offers and making recourse to the co-insurance institute both before and after the competitive bidding itself.  

Rome - May 12th, 2010