Bruce Barnard, Special Correspondent | Aug 01, 2012 11:55AM EDT
The European Union dropped a two-year investigation into marine insurance agreements between groups of shipowners after failing to find conclusive proof of anti-competitive behavior.
The European Commission, the EU’s executive arm, began a probe in August 2010 into certain provisions in claim-sharing and joint reinsurance agreements by Protection and Indemnity Clubs.
The investigation focused on the International Group Agreement and the Pooling Agreement between the clubs, which provide liability cover for approximately 90 percent of the world fleet.
The Commission was concerned the agreements might restrict competition between the clubs and prevent commercial insurers from entering the marine insurance market.
“The market investigation was not sufficiently conclusive to confirm the Commission’s initial concerns,” the Commission said today.
The International Group of P&I Clubs previously had a 10-year exemption from the EU’s competition rules; the exemption expired in February 2009.
“Even though the Commission has decided to close its investigation, the International Group plans to make amendments to the International Group Agreement,” the group said.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
