Cartel practices have seen Portugal’s competitions authority AdC fine four insurance companies the record total of 54 million euros.
The massive fines follow “a long-running investigation” in which five companies were implicated.
Seguradoras Unidas avoided financial penalties however, being the first to file what is called “a leniency request”.
Not as fortunate were the Lisbon branch of Zurich Insurance Group and Portuguese insurer Lusitania (which were both hit with the lion’s share of the fines), along with Chinese-owned Fidelidade and Multicare.
Explain reports, AdC discovered all five insurers coordinated on prices presented to large corporate clients regarding workplace accident, health and auto insurance.
This involved setting prices offered at a level “so that the incumbent insurer retained the respective client,” said AdC.
The AdC investigation was launched in May 2017 after a leniency request made by Seguradoras Unidas and Fidelidade, explains Reuters.
As a result, AdC “raided the Lisbon premises of all insurers involved”.
Releasing a statement this week, the authority said that the combat of cartels “continues to merit maximum priority as it is the most damaging practice to consumers. The Competitions Law expressly prohibits agreements between companies which, with the object of appreciably restricting competition on all or part of the domestic market, have by their very nature high potential for adverse effects, reducing consumer well-being and undermining the competitiveness of business and the economy as a whole”.
So far, there has been limited response from the insurance companies themselves.
A statement for the Zurich group however has said it “doesn’t accept AdC’s conclusions” and is “pondering (its) options, including appealing to the competent tribunals”.
“Zurich Portugal takes these matters very seriously”, said the statement, insisting that it has always acted “according to the law and all market regulations”.
natasha.donn@algarveresident.com
Image: AdC’s president Margarida Matos Rosa
