Irish Insurance Federation Agreement on Maximum Rates of Remuneration for Life Business [1998] IECA 495 (5th February, 1998)

Irish Insurance Federation Agreement on Maximum Rates of Remuneration for Life Business [1998] IECA 495 (5th February, 1998)

The agreement constitutes a restriction of competition under Section 4 of the Competition Act, 1991, as it fixes commission rates across the market, inhibits competition between insurers and intermediaries, and acts as a barrier to entry. The claimed consumer benefits and market efficiencies do not outweigh the anti-competitive effects, and the agreement is not eligible for a certificate or licence.

Citation
[1998] IECA 495
Parties
Applicant: Irish Insurance Federation; Decision Maker: Competition Authority; Objector: Consumer Association of Ireland
Jurisdiction
Ireland
Procedural Posture
Competition Law Notification / Final Administrative Decision
Outcome
Refusal of certificate and licence
Legal Topics
Anti Competitive Agreements, Commission Caps, Market Entry Barriers, Consumer Protection, Disclosure of Charges
Competition Law Insurance Law European Union Law Anti Competitive Agreements Commission Caps Market Entry Barriers Consumer Protection Disclosure of Charges

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Parties

Irish Insurance Federation

Applicant

Competition Authority

Decision Maker

Consumer Association of Ireland

Objector

Procedural Posture

Competition Law Notification / Final Administrative Decision

Legal Issues

  1. 1 Does the Irish Insurance Federation Agreement on Maximum Rates of Remuneration for Life Business restrict, prevent, or distort competition under Section 4 of the Competition Act, 1991?
  2. 2 Is the agreement eligible for a certificate or licence under the Competition Act, 1991?

Ratio Decidendi

The agreement constitutes a restriction of competition under Section 4 of the Competition Act, 1991, as it fixes commission rates across the market, inhibits competition between insurers and intermediaries, and acts as a barrier to entry. The claimed consumer benefits and market efficiencies do not outweigh the anti-competitive effects, and the agreement is not eligible for a certificate or licence.

Court Disposition

Refusal of certificate and licence

Orders

  • The Competition Authority refuses to issue a certificate or grant a licence in respect of the Irish Insurance Federation Agreement on Maximum Rates of Remuneration for Life Business.