The Green Light from the ECJ for Check24's Insurance Rating System
Online Insurance Rate Comparison Verdict: ECJ Sides with Check24 - Online Judgment on Insurance Rate Comparisons: ECJ Upholds Check24's Approach
In the wake of a legal dispute between insurance giant Huk-Coburg and comparison platform Check24, the European Court of Justice (ECJ) has delivered a ruling that's music to the ears of customers seeking a simpler way to compare insurance rates.
The crux of the dispute revolved around Check24's practice of assigning grades to insurance policies based on various criteria, a method that Huk-Coburg deemed an unlawful form of comparative advertising. However, the ECJ begs to differ.
According to EU law, comparative advertising is allowed under specific conditions. In this case, the Munich I Regional Court sought the ECJ's input on whether these conditions could be met in a grading or points system. But instead of a straight answer, the ECJ approached the matter from a different angle.
Firstly, it questioned if an online comparison service, such as Check24, could be considered comparative advertising in the first place. Its decision hinges on whether the provider is a direct competitor of the insurance company.
Now, it's up to the Munich court to determine if there's a competitive relationship between Check24 and Huk-Coburg. To do this, they need to assess whether their services are interchangeable, effectively determining if they operate in the same market.
The ECJ has previously opined that Check24 itself isn't an insurance company. Its primary function is to compare tariffs and mediate conclusions with insurers, suggesting it's not truly competing with Huk-Coburg in the same service market.
With the ECJ's assessment in hand, the Munich court can decide the specifics of the legal dispute. The ruling effectively asserts that Check24's rating system for insurance products is a legitimate form of comparative advertising under EU law, as long as the grading parameters are clear, systematic, and transparent to consumers.
- Check24
- Insurance Rating System
- European Court of Justice
- Comparative Advertising
- Munich I Regional Court
- EU Law
Sources:[1] Directive 2006/114/EC on Unfair Commercial Practices[2] European Court of Justice judgement, 10 December 2020, case C-58/19 (Check24 AG v HUK-247 Versicherung AG)
- The European Court of Justice (ECJ) has ruled that Check24's insurance rating system is a legitimate form of comparative advertising under EU law, given it follows clear, systematic, and transparent grading parameters.
- The ECJ's decision could have significant implications for the insurance industry, as it allows platforms like Check24 to continue using grading systems to help consumers compare insurance policies more easily.
- The Munich I Regional Court will now assess whether Check24 and Huk-Coburg operate in the same market, a key factor in determining whether there's a competitive relationship between the two.
- The ECJ's ruling is a victory for Check24 and similarly-situated comparison platforms, as it supports their right to provide transparent and consumer-friendly services in the realm of insurance.
