Following extensive consultation with stakeholders, the European Commission has published its final report on competitive conditions prevailing in the business insurance sector. The Commission identified two main areas of concern. First, some long standing and widespread industry practices, involving alignment of premiums were found to lead to higher prices for large risk commercial insurance. For these practices, the Commission invited the industry to either justify them from a competition law point of view, or reform them. Second, the Commission raised concerns over the transparency of remuneration and conflicts of interest in insurance brokerage as these may also lead to less competition and higher prices. The Commission announced that it will reach a decision by 2009 on whether the block exemption Regulation for insurance, which lapses in 2010, is still needed