Eight Banks Singled Out By Competition Commission

Bank One, Bank Mascarene, the Barclays, Bramer Bank, HSBC, MCB, MPCB and the SBM are involved. According to a statement issued yesterday, the 13 banks subject to the investigation, they have been involved in an exclusionary abuse of monopoly position That Has the effect of Preventing, Restricting or Distorting competition in the DTA (Note: decreasing term insurance) market .

Sean Ennis, executive director of the Competition Commission of Mauritius (CCM), said in a statement issued Thursday, August 30, that "the majority of real estate borrowers could pay less insurance premium if they had compared insurers before buying life insurance. "

In fact, these banks enter into an agreement with some insurance companies require applicants and a mortgage of a life insurance contract with the company concerned. Ennis report concludes that these banks have a "point of sale advantage" of this agreement, that is to say, direct access to the client.

The ball is now in the hands of bankers, says Rajiv Servansingh, Chair of the CCM. "The banks concerned may request a hearing. If they do, the Commission shall be convened. "

If banks do not require a hearing, the report will be validated and the banks will be under a legal obligation to implement the recommendations of the CCM.

Among the recommendations are, in particular the proposal to provide customers with insurance of at least three different companies and then simply provide the client with information about the offers of different stakeholders. A combination of both is also possible.

Contacted by the Express Ravin Dajee, the Barclays member of the Mauritius Bankers Association says that banks will study the report first. "But we are already in contact with the CCM," he says.

Other banking institutions that were included in the survey, but do not offer the same "bundling" of mortgage and insurance are the ABC Banking Corporation, AfrAsia Bank, Bank of Baroda, Habib Bank Ltd and SBI.