Do the SDCOE-JPA, SELF and other public entity insurers have relationships with brokers and lawyers that limit competition?
California's Office of the Attorney General reports:
"The Office of the Attorney General announced in March 2006 that Zurich American Insurance Company will pay some $152 million in restitution and reform its business practices to settle allegations that it unlawfully rigged bids for commercial insurance and made undisclosed payments to brokers for steering clients to Zurich.
"'Zurich participated in schemes with brokers and other insurers that inflicted financial harm on businesses and damaged the marketplace,' the Attorney General said. 'This settlement holds Zurich accountable for its misconduct, compensates clients it harmed, and provides reforms and ongoing enforcement by Attorneys General to help ensure the company does not commit similar abuses in the future.'
"The settlement resolves antitrust and unfair business practices investigations by the California Attorney General and Attorneys General in nine other states.
"The Attorney General in October 2004 launched an investigation into bid rigging and contingent payments in the commercial insurance industry. The broader investigation remains ongoing."
http://ag.ca.gov/antitrust/highlights.php
Insurance Company Settles Antitrust Complaint
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