The Competition Commission led a search and seizure operation at eight insurance companies operating in Gauteng, KwaZulu-Natal, and Western Cape provinces.
The Commission said it had reasonable grounds to suspect that several companies were engaged in collusive practices.
“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) have engaged in collusive practices to fix prices or trading conditions in respect of fees for investment products such as retirement annuity and premiums for risk-related products,” Competition Commission Head of Communications, Sipho Ngwema said.
Ngwema said 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 search and seizure operations are being conducted as part of an ongoing investigation that was initiated by the Commissioner in January 2021.
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The operations were conducted at five sites in Gauteng, two in Western Cape, and one in KwaZulu-Natal.
During the search, the Commission seized documents and electronic data, which will be analysed together with other information gathered to determine whether these firms have contravened the Act.
Ngwema said the companies under investigation operate within the long-term insurance market.
“Their activities within the long-term insurance market, include the offering of investment and risk-related insurance products,” Ngwema further said.
“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. The Commission will at an appropriate stage reveal the outcome of the investigation,” said Commissioner Tembinkosi Bonakele.
