FTC, non-life insurers 8 group accident insurance bid-rigging on-site investigation
The Fair Trade Commission 5month 26 day sent investigators to the headquarters of 8 non-life insurers, including Samsung Fire & Marine Insurance, DB Insurance and Hyundai Marine & Fire Insurance, to investigate suspected collusion in group accident insurance bidding. The FTC said it had secured relevant materials. It did not disclose details of the case, but said it would impose sanctions if violations were confirmed.
The Fair Trade Commission 5month 26 day launched an on-site investigation into the non-life insurance industry. The FTC recently sent investigators to the headquarters of 8 non-life insurers, including Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, KB Insurance, Meritz Fire & Marine Insurance, Hanwha General Insurance, NH NongHyup Property & Casualty Insurance and Heungkuk Fire & Marine Insurance. The investigation is focused on suspicions of collusion in the bidding process for group accident insurance.
Group accident insurance is insurance taken out by a company or organization that pays benefits when a member suffers a bodily injury. The FTC suspects that bidders may have agreed in advance on the winner, a cover bidder and bid prices. It was reported that bidding-related materials and internal documents had been secured.
The Fair Trade Act prohibits businesses from deciding prices or transaction terms in advance among themselves. It explicitly prohibits deciding the winner, cover bidders and bid prices in tenders and auctions as well. The FTC is reviewing materials with a focus on suspected violations of these provisions.
A Fair Trade Commission official said it would be difficult to disclose specific details of the case. The official said the commission would impose strict sanctions if violations of the law are confirmed. The investigation is ongoing, and the submission of additional materials and further investigative work are expected to continue.
Insurers confirmed that an investigation was underway and reportedly cooperated by submitting relevant materials. The investigation was said to be examining group insurance bidding practices in the non-life insurance industry. The Fair Trade Commission’s final determination and whether to impose sanctions will depend on the results of the investigation.