European Antitrust "Block Exemption" For Insurance Under Review

In the United States, the McCarran Ferguson Act (15 USC 1011-1015), enacted by Congress in 1945, provides the insurance industry with a limited exemption from the federal antitrust laws. The Act applies to all conduct that constitutes "the business of insurance," provided that the conduct is "regulated by state law" and is not an act of "boycott, coercion or intimidation." While the Act has been the subject of controversy over the years, and calls for its repeal have been frequent, including most recently during the debate that ultimately led to the enactment of the Affordable Care Act, the Act remains in place and provides a significant defense to potential antitrust liability for a wide range of insurer activity.