Competition Authority raids insurance companies

On March 12, 2019, a group of local panel beaters lodged a complaint with the CCA in which it alleged that Bryte Insurance Company Botswana, Hollard Insurance Botswana, Old Mutual Financial Services Botswana, and Botswana Insurance Company were abusing their dominance.

“The respondents’ conduct signals coordinated behaviour through the respondents’ common terms of trade that impose a cap on labour costs and predetermined markup. The respondents in union also force auto repair specialists (panel beaters) to disclose the costs of parts bought for the authorised repairs. The circumstances of the case further imply possible market allocation and constructive refusal to deal through stringent terms of trade,” reads a letter from CCA to one panel beating company seeking consent to an extension of an investigation into this matter.