Friday, July 9, 2010
Posted by D. Daniel Sokol
Alan Davis and Christina Day (both Pinsent Masons LLP) describe The New Insurance Block Exemption Regulation.
ABSTRACT: Under the new regulation, a block exemption remains available for insurance agreements but its scope is more limited and comments by the European Commission raise the prospect of greater scrutiny.
The new insurance block exemption automatically exempts certain types of cooperation agreements between insurers but in a more limited way than was previously the case, and there will be an increased need for insurers to self-assess the compliance of their agreements with the competition rules. Comments by the European Commission about monitoring and enforcement of the new application of the new block exemption also raises the prospect of greater scrutiny of the insurance sector under the competition rules, especially in the area of co-insurance and co-reinsurance groups.