Alleged price fixing by the Insurance Association of Malawi
The Commission launched investigation on its own volition following the information it came across alleging that Insurance Association of Malawi engaged in setting of premium rates and recommending the same to its members contrary to Section 32(1) and Section 34(1) of the Competition and Fair Trading Act. The investigation was informed that the association’s conduct followed advice from Registrar of Financial Institutions who was concerned that some Insurance companies were pricing below cost and this led to the companies facing liquidity problems among others.
On its 40th Meeting held on 30th October, 2014, the Commission determined that the association engaged in a cartel and ordered them to cease and desist from the practice; and make a public withdrawal of any recommended premium rates that might be in force. The Commission committed itself to engage the Registrar of Financial Institutions to sensitize the office on the provisions of the Competition and Fair Trading Act.
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