Competition Commission Busts 8 Life Insurers Accused of Fixing Prices and Collusion

• Eight major life insurance companies in the country have been accused of price fixing and collusion
• The Competition Commission raided several head offices in Gauteng, Western Cape and KwaZulu-Natal
• Documents and electronic data were seized by the commission and will be analysed by investigators

JOHANNESBURG - Several major life insurance companies face allegations of price fixing and collusion. This comes after the Competition Commission raided the offices of Sanlam, Discovery, Momentum, and other corporate offices.

Eight of the country’s biggest life insurers could be slapped with the pricy fine. The companies are also believed to have conspired to fix trading conditions for their investment products.

If the companies are found guilty, they could be fined up to 10% of their profits. The raids took place in Gauteng, Western Cape and KwaZulu-Natal at the head offices of several companies.

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The Competition Commission’s said documents and electronic data were seized and will be analysed. However, spokesperson Sipho Ngwema said it would be hard to determine how long the investigation would take.

He said the investigation consisted of probing if the insurers shared sensitive client information. Ngwema said shared information would be the first sign indicating the companies were working together.

The spokesperson said the commission must be given space to conduct the investigation, and after that, it will decide whether it would prosecute. According to EWN, the investigation is yet to determine if other companies were involved.

South Africans react to the allegations:

@ba_shi_twalo said:

“If these fines are returned to customers, then it’s great. But if the fines go to the government and Competition Commission then it’s nothing more than profit sharing.”

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@GillianYoungBe1 posted:

“Wish they’d raid them for their fraudulent short-term insurance moves too!”

@PaspaulinB commented:

“While people are being distracted by irrelevant battles their lives and kids’ futures are stolen right before their eyes. This is the kind of thing people should be invested in, this is the soul of the country.”

SA reacts to Competition watchdog shaming networks over data prices

In a related matter, Briefly News also reported the Competition Commission has slammed local network providers for ripping off South Africans with high data costs.

Two of the country’s leading network providers, MTN and Vodacom, charge between R150 and R170 for 1GB of data, while mobile users in Egypt pay a mere R16.

The commission found that both MTN and Vodacom, the larger service providers on the continent, have much cheaper data rates in other parts of Africa.

Source: Briefly News