AGCM

The Authority has accepted the Association’s commitments. According to the Italian Competition Authority, this resolves the competition concerns that led to the investigation opened in November last year

The Italian Competition Authority has closed an investigation, which was opened on 3 November last year, against Associazione Nazionale fra le Imprese Assicuratrici (National Association of Insurance Companies - ANIA).

The proceedings initiated following a communication sent to the Authority by ANIA with regard to a “fraud detection project” in life and non-life insurance, that envisages the creation of databases and development of common algorithms to establish fraud risk indicators. Being fully aware of the costs that the phenomenon of fraud implies for the industry and for consumers, in the opinion of the Italian Competition Authority, ANIA’s “fraud detection project” raised competition concerns that required careful examination during the proceedings.

In particular, according to the Authority there was a risk that developing common algorithms might influence, and standardize, the choices made by companies at essential phases of the insurance activity and that sharing such large quantities of data might facilitate collusion. Moreover, the Authority was concerned that there would not be sufficient independence guarantees to ensure that the anti-fraud activity would actually be carried out to the benefit of all stakeholders, with the consequent risk, among other things, of anti-competitive foreclosure.

During the investigation - to which IVASS (Institute for the Supervision of Insurance) significantly contributed from a technical perspective on account of the Institute’s experience in motor vehicle liability insurance fraud detection activities - ANIA submitted commitments to resolve the competition concerns identified by the opening of proceedings decision.

The commitments made substantial changes to the “fraud detection project” as initially communicated in order to limit the possible uses of databases, provide safeguards to ensure their proper use and allow the largest possible participation in the project.

The commitments submitted by ANIA were deemed by the Authority to be suitable to resolve the competition concerns identified at the opening of proceedings. Moreover, in view of widespread fraudulent activities in the insurance industry, fraud detection may result in significant cost savings, that may in turn lead to lower prices for the insured and benefits for  society at large.

Rome, 4 October 2021