An EU report by competition commissioner Neelie Kroes has claimed that business insurance underwriting in the EU is not yet fully integrated.
Fragmented markets across the EU states may be preventing adequate levels of competition, her report revealed.
She highlighted concerns that in some states, larger corporations may be getting more transparent and competitive deals than smaller companies.
Long-term insurance contracts can reduce competition, particularly in Austria, Italy, the Netherlands and Slovenia, she reported.
And insurance intermediaries can have conflicts of interest when they are expected to support both clients' and insurers' needs.
Commissioner Kroes said:"The preliminary findings of the commission's inquiry into the business insurance sector have identified factors on all levels of the supply chain that may prevent the markets from working as well as they should."
She also criticised the lack of transparency in financial transactions of insurance mediation services, saying that this made it more difficult for prices to remain competitive.
The commission's findings are being reported to a public hearing today and there will be a consultation period until April 10th 2007.
