Australia's competition regulator said it was concerned about Aon PLC's planned acquisition of Willis Towers' Watson PLC as it could drive higher prices and reduce services for large commercial buyers. "Significantly reduced competition" in terms of commercial risk, reinsurance and employee benefits worldwide as well as in Australia. New Zealand's competition regulator recently closed submissions on its statement of concern over the deal and could reach its decision by the end of this month. & McLennan Cos. Inc. risks removing "significant competition restrictions" and opens the door to higher prices and declining service for commercial customers. for commercial risk mediation to large clients or those with more complex and / or highly valued insurance premiums, reinsurance brokers and employee benefits in Australia, says Stephen Ridgeway, ACCC Commissioner. "Reducing the number of brokers in these already concentrated markets increases the potential for the remaining brokers to adjust their pricing and strategies," he said.
The Commission said it would take a closer look at whether certain business classes may be more affected by post-trade rate hikes. It focuses on financial and professional, cyber, marine and construction insurance.
The Commission said it was also concerned about the provision of reinsurance brokers and advisory services should Aon's acquisition of WTW proceed.
“Reinsurance is important for the Australian economy as it enables insurers to continue to take out new insurance policies. The ACCC is concerned that the proposed merger will reduce insurers' choice of reinsurance brokers in an already concentrated market. This can lead to price increases or reduced service levels for customers, including the ability to access sufficient reinsurance capacity, ”said Ridgeway.
The ACCC has invited submissions to its statement until 1
Earlier this month, top executives at Aon and Willis Towers Watson said they expect the acquisition to be completed in the first half of 2021. During a results conversation, Willis Towers Watson CEO John Haley said approving legislation will always be difficult for such a complex business with archiving all over the world.
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