How the Antitrust Authority forced Ania to modify the anti-fraud project in the non-life and life sectors
The Antitrust has accepted the commitments of the insurance association (Ania). According to the Agcm, in this way the competitive problems that had led to the initiation of the preliminary proceedings last November are resolved. All the details
The Competition and Market Authority closed the preliminary investigation, started on 3 November last , against the National Association of Insurance Companies (Ania).
The proceeding arose following a communication sent to the Agcm by Ania itself, relating to an "anti-fraud project" for the life and non-life sectors, which provides, among other things, the creation of databases and the development of common algorithms to determine fraud risk indicators. Aware that the phenomenon of fraud can cause costs for the industry of the sector and for the policyholders, the Antitrust has considered that the "anti-fraud project" of Ania presented some competitive criticalities to be carefully assessed in the context of the procedure. Guarantor.
In particular, according to the Authority, there was a risk that the development of common algorithms could influence, by standardizing them, the choices of the companies in essential phases of the insurance business and that the sharing of a large amount of data could facilitate collusion. Furthermore, it was feared that there were insufficient third party guarantees such that the anti-fraud activity could be effectively carried out for the benefit of all stakeholders, with the consequent risk, among others, of anticompetitive foreclosure.
During the preliminary investigation procedure – during which IVASS provided a significant technical contribution, also on the basis and on the basis of the experience gained by the Institute in the Motor TPL anti-fraud activity – Ania presented a series of commitments to resolve the critical issues competition indicated in the initiation provision.
The commitments consist of substantial changes to the "anti-fraud project" initially communicated, such as to circumscribe the possible uses of the databases, to provide for safeguards aimed at guaranteeing their correct use and to allow the widest adherence to the project.
The Authority therefore considered that the commitments presented by Ania are suitable for remedying the competition concerns expressed at the start. This in a context in which, given the widespread prevalence of fraudulent activities in the insurance sector, anti-fraud activity can lead to significant cost savings, which can translate into cheaper prices for policyholders and benefits for the entire community.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-lantitrust-ha-costretto-ania-a-modificare-il-progetto-antifrode-nei-rami-danni-e-vita/ on Mon, 04 Oct 2021 12:52:09 +0000.