Communication
The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.
Triglav INT/Raiffeisen – approved merger in the pension insurance market
The concentration between the undertakings concerned will produce effects in the pension insurance market. Namely, Raiffeisen MOD is currently the only pension insurance company that ensures payments form the mandatory and voluntary pension fund. Its activities have been regulated by a separate law – the Pension Insurance Companies Act, whereas its operation is under the supervision of the Croatian Financial Services Supervisory Agency (HANFA).
In accordance with the data from the notification in question significant changes in the pension insurance market are expected to occur after 2019 when the first generation of the members of the mandatory pension funds, who were born in 1962 or later, and cannot move back to the so called I Pillar, will have the right to early retirement pension. Therefore, there will be more users of the pensions from the mandatory pension insurance in the coming years since more members of the mandatory pension funds will have the right to pension payments form the combined system.
The notification also reveals the forecasts that from 2020 there will be more new entrants in the market in question. Potential competitors are presumably going to be the ones already active in the Croatian pension system market. For the members entitled to pensions it would mean more options for selecting a pension insurance company.
The Croatian Competition Agency cleared the concentration given the fact that it would not produce anticompetitive effects nor create or strengthen a dominant position in the market of any of the parties to the concentration.