The Commission’s spokesperson, Sipho Ngwema, tells the OFM Business Hour, that the alleged misconduct, which was reported to them by an industry insider, dates back to the 1980s. These companies could face hefty fines if found guilty. 

Allegations of price fixing and collusion

The bigwig insurance companies reportedly “engaged in collusive practices to fix prices and/or trading conditions in respect of fees for investment products. Such as retirement annuity and premiums for risk-related products, namely: life insurance cover such as dreaded 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,” says the commission via their statement on the raids which reportedly took place on Thursday 25 August 2022 and Friday 26 August 2022.

Also Read: Insurance companies raided by Competition Commission

The offices that were raided are located in Gauteng, two in the Western Cape, and one in KwaZulu-Natal. Ngwema requests that the public gives the Commission time to ascertain via the evidence collected if indeed any contraventions were committed and only then will pronouncements on the matter be made.

OFM