EU Investigates Shipping Insurance Agreements

The European Commission has initiated a formal investigation amidst speculation that ship owners and insurers have breached EU antitrust rules.

“The Commission fears that the provisions at stake in the agreements between the Protection & Indemnity Clubs within the International Group of P&I Clubs may harm ship owners and the insurers that are not members of the IG,” the commission said in a statement.

The commission will look into whether agreement provisions could reduce competition between P&I Clubs or restrict mutual P&I and other commercial insurers’ access to the relevant markets, according to the statement.

The commission said that if any such breach occurs it will affect ship owners and insurers as well as members of the International Group of Protection & Indemnity Clubs. The members of the IG provide protection and indemnity insurance to about 93 percent of the world’s ocean-going tonnage.

The EC reports it has not received any complaints nor has it set a deadline for completing the investigation. Shipping and insurance companies will be given the opportunity to defend themselves before the commission announces its verdict.