El Salvador: Competition authority goes after Insurance companies

El Salvador’s competition superintendent, Francisco Díaz, has announced a series of important decisions and improvements to the country’s competition laws during the first year of President Salvador Sánchez’ administration. In particular, he specified a recent landmark resolution over 3 insurance companies (Asesuisa Vida, Sisa Vida and AIG Vida SA) accused of disloyal competition and collusion in April.

El Salvador’s watchdog determined that the companies had agreed on setting prices for public contests run by government agencies CONFIA and CRECER to handle their employee’s health insurance scheme (SIS). The superintendence has ordered the deal to be annulled, and imposed a fine equivalent to 1.2% of their total sales for 2014.

The resolution, continued Mr. Díaz, will benefit the companies’ affiliates as well as potential competitors in the SIS provision market. The infractions committed would have negatively affected SIS beneficiaries, who would have been made to pay higher rates for their insurance as a result of contract manipulations, instead of a legitimately competitive process.

Source: Verdad Digital

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