CGUCGU Insurance

CGU Centre, Level 6, 181 William Street, MELBOURNE VIC 3000t (03) 9601 8429

20 May 2013

Australian Competition and Consumer CommissionGPO Box520Melbourne Vic 3001

Dear SinMadam

Notification of Exclusive Dealing - Form G

Please see enclosed Notification of Exclusive Dealing - Form G together with the lodgementfee in the sum of $100.00

Should you have any queries or require any further information, please contact Rosilyn Ivanyiof this office on (03) 9601 8618 or by email atrosil n ivan i c u co .au.

Yours, sincerelyI

4" re'ion Good

General CounselCGU Insurance Ltd

am

FILE No

Doc

MARS/PRISM

co^'^.^8^^^!"SI N2 I "AY 2113

CGU Insurance Limited ABN 27 004 478 371

FormG

Commonwealth of Australia

Compeliiion and Consumer ACi2010 -subseciion 93 (1)NOTIFICATIONOFEXCLUSIVEDEALING

To the Australian Competition and Consumer Commission:

Notice is hereby given, in accordance with subsection 93 (1) of the Competition andConsumer Act 2010, of particulars of conduct or of proposed conduct of a kindreferred to subsections 47 (2), (3), (4), (5), (6), (7), (8) or (9) of that Act in which theperson giving notice engages or proposes to engage

PLEASEFOLLOWDIRECTIONS ONBACKOFTHISFORM

I. Apphcant

(a) Nameofpersongivingnotice

CGU Insurance Limited (ABN 27 004 478 371) ("CGU'!)

(b) Short description of business carried on by that person

Intermediary based general insurer. Products encompass commercial,rural, personal and workers' compensation insurance

Address in Australia for service of documents on that person:General Counsel

CGU Insurance Limited

Level 6, 181 William StreetMelbourne VIC 3000

(c)

2. Notified arrangement

(a) Description of the goods or services in relation to the supply or acquisitionof which this notice relates

The arrangement relates to the supply of. Landlordsresidentialpropertylnsurance. Valuables Insurance

. Travellnsurance

. Caravanlnsurance

. Boatlnsurance

. Homelnsurance

. Contentslnsurance

. Carlnsurance

. Trailer Insurance

. Motorcyclelnsurance

. DomesticWorkersCompensation

(together 'CGIJ General Insurance Products')

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(b) Description of the conduct or proposed conduct

CGU proposes to, from time to time

. offer a discount, allowance, rebate or credit on CGU General InsuranceProductsto Australian consumers on the condition that the consumer

acquires private health insurance from a private health insurance fund,which may include HBF Health Ltd (ACN 126 884 786 125)('HBFHealth') and/or Buna Australia Pty Limited (ABN 81 000 057 590)('Bupa Australia'). The discount offer may be multi-tiered such thatconsumersreceive an increased discount asthey acquire additionalCGU General Insurance Products.

. refuse to offer a discount, allowance, rebate or credit on CGU GeneralInsurance Productsto Australian consumers forthe reason that the

consumer is not a member of, or has not agreed to become a member of;a private health insurance fund, which may include HBF Health and/orBupa Australia

3. Persons, or classes of persons, affected or likely to be affected by thenotified conduct

(a) Class or classes of personsto whichthe conductrelates:

The persons likely to be affected by the notified conduct are. Current and potential members of CGU General Insurance Products;

and

. Current and potential members of a private health insurance fund, whichmay include HBF Health and Bupa Australia

(b) Number of thosepersons:

(i) At presenttime:

Current approximate HBF Health members - 900,000

Current approximate Bupa Australia members - 3.3m

Current approximate policy holders of CGU General InsuranceProducts - 1.42m

(ii) Estimated withinthenextyear

HBF Health - expected increase ofno chanoe expected

BupaAustralia-no change expected

CGU - expectincrease of 0.4%

(c) Where number of persons stated in item 3 (b) (1) is lessthan 50, their namesand addresses:

N/A

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4. Public benefit claims

(a) Arguments in support of notification

There are numerous health funds which operate in Australia. CGU haspartnered withBupa Australia and HBF Health (Authorised Representativesof CGU) to provide CGU with an opportunity to market general insuranceto their members, CGU may also partner with other private health insurancefunds

The notified conduct will provide a number of public benefits, including

the conduct will make available discounts to members of CGU(1)General Insurance Products who are, or choose to become, amember of aprivate health insurance fund;

(11) the conduct may reduce insurance premiums as a result ofcustomerstaking advantage of cheaper CGU General InsuranceProducts; and

(in) the conduct may stimulate increased competition between CGUand other insurance providers and lead to an increase in similaroffers, discounts and benefits being made to consumers

(b) Facts and evidence relied upon in support of these claims:

See the response to question 4(a) above.

In addition:

. Ifa customer is a member of a private health insurance fund, such asBupa Australia or HBF Health, the customer may be entitled to up to10% discount on CGU General Insurance Products

. CGU may offer a range of discounts depending on the number of CGUGeneral Insurance Productsthe customer acquires or has acquired.

. The discountlevel automatically may be adjusted depending on thenumber of CGU General Insurance Productsthe customer has at the

time of renewal. Ifthe customer has purchased additional productsthroughoutthe year, their discount may increase

Market definition5.

Provide a description of the market(s) in which the goods or servicesdescribed at 2 (a) are supplied or acquired and other affected marketsincluding: significant suppliers and acquirers; substitutes available for therelevant goods or services; any restriction on the supply or acquisition ofthe relevant goods or services (for example geographic or legal restrictions):

. The relevant market(s) forthe supply of general insuranceproducts and health insurance products in Australia.

Public detriments6.

(a) Detriments to the public resulting or likely to result from the notification, inparticular the likely effect of the notified conduct on the prices of the goods

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or services described at 2 (a) above and the prices of goods or services inother affected Innrkets:

CGU does not believe that there will be any public detrimentsresultingor likely to result from the proposed conduct.

(b) Facts and evidence relevant to these detriments:

Members of the public have a choice of insurance providers in acompetitive general insurance market and the proposed conduct will notrestrict that choice.

As the relevant Innrkets are competitive and a customer's choice will not berestricted, the proposed conduct is unlikely to lead to any increase in pricesin those markets.

7. Further information

(a) Name, postal address and contacttelephone details of the person authorisedto provide additional information in relation to this notification:

Contact person: Rosilyn Ivanyi- Senior Corporate Lawyer

CGU Insurance Limited

Level 6, 181 William StreetMelbourne VIC 3000

Telephone: 03 0601 8618

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Page 4 of5

DIRECTIONS

I. In lodging this form, applicants must include all information, including supportingevidence that they wish the Coriumission to take into account in assessing theirnotification.

Where there is insufficient space on this form to furnish the required information,the information is to be shown on separate sheets, numbered consecutiveIy andsigned by or on behalfofthe applicant

2. Ifthe notice is given by or on behalfofa corporation, the name of the corporationis to be inserted in item I (a), not the name of the person signing the notice, andthe notice is to be signed by a person authorised by the corporation to do so.

3. Describe that part of the business of the person giving the notice in the course ofthe which the conductis engaged in.

4. Ifparticulars of a condition or of a reason of the type referred to in section 47 ofthe Compeliiion and Consumer ACi2010 have been reduced in whole or in part towriting, a copy of the writing is to be provided with the notice.

5. Describe the business or consumers likely to be affected by the conduct.

6. State an estimate of the highest number of persons with whom the entity givingthe notice is likely to deal in the course of engaging in the conduct at any timeduring the next year

7. Provide details of those public benefits claimed to result or to be likely to resultfrom the proposed conduct including quantification of those benefits wherepossible.

8. Provide details of the market(s) likely to be affected by the notified conduct, inparticular having regard to goods or services that may be substitutes for the goodor service that is the subject matter of the notification

9. Provide details of the detriments to the public which may result from the proposedconduct including quantification of those derriments where possible

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