New Zealand: Authorities justify pass for major insurance merger

New Zealand’s Commerce Commission is defending its decision to allow IAG insurance giant to acquire Lumley Insurance, publishing a document that assures there is sufficient competition in the industry to prevent price hikes.

The Commission has allowed Australia-based IAG to acquire the domestic company despite opposition from industry competitor Suncorp. In a statement, authorities said “IAG is unlikely to be able to profitably increase prices for personal insurance products above or reduce quality below the levels that would prevail without the acquisition.”

Full content: Stuff.co.nz

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