Lloyd’s Market Association (LMA) has warned insurers and reinsurers will have to self-assess compliance with competition law in areas of pooling underwriting capacity and market-data collection after the European Commission announced the Insurance Block Exemption Regulation (IBER) will lapse on 31st March.
“The Commission’s announcement at the end of last year that IBER would not be renewed was widely expected” said LMA’s head of legal and compliance, Kees van der Klugt, “but it means that where pooling of capacity would otherwise have fallen into the IBER safe harbour, firms in the market must place heavier reliance on individually ensuring compliance with the underlying competition law, both UK and EU.”
The LMA updated its competition law guidance with a self-assessment checklist by David Kendall and Becket McGrath of Cooley LLP, to reflect the regulatory changes.
Kees added; “All firms in the marketplace, when entering into co-insurance binding authorities, lineslips, consortia or similar arrangements, need to undertake some sort of self-assessment process. We believe this revised guidance and simple checklist will prove useful for that.”
With the lapse of IBER, insurers and reinsurers operating in Europe are advised to be wary of compliance requirements from the various underlying competition laws.
The LMA will publish its new guidance to assist re/insurers with self assessment on 31 March.