The Fair Trade Commission (FTC) has launched an on-site investigation into eight non-life insurers over alleged bid-rigging in group accident insurance contracts.
According to industry sources on Wednesday, the FTC's Cartel Investigation Bureau recently dispatched investigators to the headquarters of eight insurers — Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, KB Insurance, Hanwha General Insurance, NH Nonghyup Property & Casualty Insurance, Heungkuk Fire & Marine Insurance, and Hyundai Marine & Fire Insurance — to conduct on-site inspections.
The FTC is reportedly investigating allegations that the insurers colluded during the bidding process for group accident insurance contracts with corporate clients. Under the Fair Trade Act, agreements among competing businesses to predetermine winning bidders or bid prices are prohibited.
Group accident insurance is purchased by companies or organizations to cover injuries to their employees. Unlike individual policies, the company signs the contract while the benefits, including insurance payouts, go to the employees.
