Case Description
Plaintiff state alleged a series of conspiracies within the reinsurance industry, principally led by broker Guy Carpenter & Company, LLC, to fix prices and terms on reinsurance contracts purchased in Connecticut and throughout the United States and to mislead primary insurance company clients regarding Guy Carpenter’s role as an agent and underwriter for numerous reinsurance companies. Complaint alleges that Guy Carpenter conspired with numerous reinsurers to fix prices and output, foreclose competitors from access, allocate markets and eliminate competition in the reinsurance market. Guy Carpenter, rather than seeking competitive quotes on behalf of its clients, funneled business to reinsurers participating in the closed market it created. According to the complaint, reinsurers, in order to gain access to this closed market, agreed not to compete on the prices and terms set by either Guy Carpenter or another ‘lead’ reinsurer and instead agreed to be bound by the same prices and terms as the other reinsurer participants. Plaintiff state also alleged that Guy Carpenter channeled business to a wholly-owned subsidiary without revealing its relationship with the subsidiary to its clients.
