Spain’s antitrust watchdog, the National Commission of Markets and Competition (CNMC), has initiated an investigation into potential anti-competitive practices involving Italian insurer Generali and Spanish health insurance provider Sanitas.
The focus of the probe is a collaborative agreement between the two companies that commenced in January 2023, which is now under scrutiny for potentially violating competition laws.
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The CNMC is examining whether the agreement includes clauses that could restrict competition, specifically regarding the management of healthcare services for Generali’s clients.
The probe aims to determine if the insurers have fixed prices and commercial or service conditions, potentially affecting all current and future Generali customers covered by the agreement.
The watchdog is also analysing if there are elements within the contract that could limit competition in certain client segments or other markets not directly related to the agreement.
After a confidential information phase, “substantial evidence” suggested potential breach of Article 1 of the Law for the Defence of Competition (LDC) by both companies.
The Italian insurer said it was “confident” about the terms of agreement “with the law in terms of competition”, adding it remained “at the disposal of the CNMC to provide all the necessary information”, reported Reuters.
“This is a standard service provision reinsurance agreement in the industry,” the company said.
Under the ten-year agreement, Sanitas provides Generali’s policyholders with access to an medical network including 51,000 professionals, 240 contracted hospitals and more than 4,100 medical centres.
Meanwhile, in a separate development, Generali has completed the acquisition of shares in Generali China Insurance Company Limited (GCI), achieving sole ownership of its property and casualty insurance business in China.
With all necessary regulatory approvals in place, GCI will now operate under the Generali brand in the Chinese market.
Generali Group reported a 5.4% increase in its adjusted net result for the year 2024 to €3.8bn, up from €3.5bn a year ago.
