Following a two-year investigation, the European Commission (Commission) has published its final report into the business insurance sector. The Commission concluded that, despite the existence of large multi-national insurance groups, primary insurance markets remain national in scope that are largely sheltered from cross-border entry. The main issues of concern highlighted for future action were (i) instances where the market practice of long-term contracts lead to market foreclosure; (ii) practices leading to premium alignment in the purchase of re-insurance and co-insurance and indications of potential market failure due to conflicts of interest; and (iii) lack of transparency in relation to insurance brokerage. Other issues are likely to be the subject of further enquiry. For instance, in the downstream market for distribution of business insurance (through brokers, agents, banks and direct sales), the Commission noted that it would be seeking to address some of its concerns in the context of the review of Directive 2002/92 (the Mediation Directive). There is also an upcoming review of the insurance block exemption Regulations 358/2003, where the Commission will consider whether the directive inadvertently exempts anti-competitive forms of co-operation.