Competition Commission raids major insurance companies.

By Lehlohonolo Lehana.

The Competition Commission has started raiding the offices of eight major insurance firms on Thursday afternoon over alleged collusion and price fixing. 

In a statement released on Thursday it said it is conducting search and seizure operations at BrightRock Life; Discovery; FMI, a division of Bidvest Life; Hollard Insurance Group; Momentum, a division of MMI; Old Mutual Insure; Professional Provident Society (PPS) and Sanlam.

It claims there are “reasonable grounds” to believe the companies engaged in collusive practices to fix prices or trading conditions in respect of fees for products like retirement annuities, and premiums for dread disease cover, chronic medical condition cover, disability cover, life cover and funeral assistance benefits in contravention of section 4(1)(b)(i) of the Competition Act.

“The search and seizure operations are being conducted as part of an ongoing investigation that was initiated by the Commissioner in January 2021. The operations are being conducted at five sites in Gauteng, two in Western Cape, and one in KwaZulu-Natal.”

The commission will seize documents and electronic data to determine whether these firms contravened the Competition Act.

Commissioner Tembinkosi Bonakele said: “The search and seizure operation is part of the routine process of evidence gathering and we urge all involved to allow the investigation to run its course. The Commission will at an appropriate stage reveal the outcome of the investigation.”

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