THE Competition Commission conducted search and seizure operations at the premises of eight major insurance companies in South Africa on Thursday, 25 August 2022.
The commission said it had “reasonable grounds” to suspect the companies had engaged in collusive practices in contravention of section 4(1)(b)(i) of the Competition Act.
The companies are alleged to have fixed prices and trading conditions in respect of fees for investment products such as retirement annuity and premiums for risk-related products, including life insurance cover such as dread disease cover, chronic medical condition cover, disability cover, life cover and funeral assistance benefits.
“According to the information at the disposal of the Commission, the companies under investigation share information on premium rates for risk-related products and fees for investment products, which enables them to adjust the prices of their existing and new insurance products,” the commission stated.
The insurance companies targeted in the raids were as follows:
- BrightRock Life Limited;
- Discovery Limited;
- FMI, a division of Bidvest Life Limited;
- Hollard Insurance Group (Pty) Ltd;
- Momentum, a division of MMI Limited;
- Old Mutual Insure Limited;
- Professional Provident Society Limited and
- South African National Life Assurance Company (Pty) Ltd (Sanlam)
The commission said the search and seizure operations were being conducted as part of an ongoing investigation initiated by the commissioner in January 2021.
“In terms of section 48 of the Act, the Commission is authorised to enter and search premises and seize documents that have a bearing on its investigation,” it explained.
“The Commission has obtained warrants authorising it to search these companies from the North Gauteng (Pretoria) High Court, Kwazulu Natal (Durban) High Court, and Western Cape High Court.”
“The operations are being conducted at five sites in Gauteng, two in Western Cape, and one in KwaZulu-Natal,” the commission stated.
The search will include the seizure of documents and electronic data, which will be analysed together with other information gathered to determine whether these firms have contravened the Act.
The commission added the operations were being conducted with “due regard to the rights of all affected persons”.
“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,” said commissioner Tembinkosi Bonakele.
“The Commission will at an appropriate stage reveal the outcome of the investigation,” said Bonakele.
STAFF REPORTER|
