On 13 December 2016, the European Commission confirmed that the Insurance Block Exemption Regulation (IBER), which expires on 31 March 2017, will not be renewed.
As explained in our previous update (see here), subject to conditions, the IBER exempts certain types of agreements between (re)insurers from competition law. This means that such agreements benefit from a presumption of compliance with competition law. The expiry of the IBER will not mean that these forms of co-operation become unlawful under competition law, but rather that (re)insurers must assess them under competition law, in their market context, to ensure compliance.
The Commission will monitor the impact of the expiry IBER and will assess the need for further guidance if it creates any legal uncertainty.