Anti Trust Statement
Anti-Trust Compliance Statement
Representatives of companies or trade associations participating in The International Association of Engineering Insurers (IMIA) are advised to bear in mind that their respective companies or the members of their respective associations are competitors in the marketplace outside their activities as participants in IMIA. Accordingly, company representatives and members of trade associations may discuss issues of a qualitative nature such as the impact of new legislation. However, they should exercise great care in discussing matters unrelated to IMIA policies or other proper business matters affecting IMIA.
1. Anti-Trust Laws
- Purpose. The purpose of Anti-trust legislation is to maintain free enterprise through fair competition. Agreements, understandings or concerted practices between competitors which (a) fix purchase or selling prices or other trading conditions, (b) limit or control production, markets, technical development, or investment or not compete in certain geographical areas or markets, (c) boycott actual or potential customers or suppliers or apply dissimilar conditions to equivalent transactions with other trading parties, (d) engage in a tying arrangement (i.e. agreement by a party to sell a product or service only if the buyer also buys a different (tied) product or service), and (e) share markets or sources of supply may be anti-competitive in various jurisdictions.
- Applicable Laws. Most countries have published and enforced anti-trust laws. They may apply to actions or agreements entered into abroad as well as domestically. Infringement of anti-trust laws may result in (a) fines against both the IMIA, its members and any trade associations (b) criminal sanctions and/or disqualification as a company director and (c) damages to injured third parties and (d) void or unenforceable agreements.
- IMIA Policy. IMIA recognises the importance of compliance with those anti-trust laws which are applicable to members of the IMIA. These laws generally prohibit underwriters from entering into any agreement, understanding or concerted practice, express or implied, on matters affecting rates or conditions of insurance. It is the policy of the IMIA to require its Members, Officers and all participants in IMIA activities to honour and abide by these prohibitions in all respects.
2. Anti-Trust Guidelines for IMIA Members, Officers and Participants in all IMIA Activities The following specific guidelines should be observed:
- Written Agenda. All IMIA meetings, including working groups, should have a written agenda. At the opening of each work session, the chairperson ought to make reference to this anti-trust document. Accurate and detailed minutes of each meeting (including reference to anti-trust guidelines) should be published. As a general rule, all involved should adhere to the written IMIA meeting agenda.
- Rates. All involved should not discuss or exchange information on their respective companies’ intentions concerning rates (including “pure premium”) and should not pressure other companies to raise rates or use a particular rate or cost factor as a “benchmark” in setting rates.
- Underwriting Guidelines. There should be neither discussion nor exchange of information between the participants about the underwriting guidelines of their respective companies.
- Policy Forms. All involved should not discuss what specific terms are appropriate in particular policies, such as provisions governing the coverage trigger, limits, exclusions or types of risks covered, which are all elements of competition between companies.
- Claims. All involved should not disclose their individual claims adjustment and cost containment practices.
- Reinsurance. All involved, whether primary carriers or reinsurers, should not disclose their plans for negotiating renewals, existing reinsurance arrangements purchased or provided by their companies.
- Markets. There should be no discussion of what market response companies should make, or threaten to make, in reaction to changes in governmental regulation. Specifically, there should be no suggestion that companies withdraw from a particular class of customers in order to induce, deter, or retaliate against such governmental action.
- Relationship with Distributors. All involved should not discuss their individual plans regarding competitively sensitive matters in this area.
- Report. All instances of meetings where the matters covered in this Appendix are raised or attempted to be raised should be reported to IMIA and to your respective company. If you are unsure or in doubt about what you can and cannot discuss at IMIA meetings, please take independent advice from your legal advisers before attending.
Revised Anti-Trust statement – July 2004