European insurers will see only a more limited exemption from normal competition rules under draft proposals put forward by European Union officials on Monday – a move which the industry claims could push up policy costs for consumers.

Draft proposals would continue the existing exemption for insurance pools, where risk is shared and there is exchange of statistical information, so that risks can be calculated more accurately. However, EU officials are suggesting that these exemptions be monitored more tightly. And the exemption would no longer apply to agreements between insurers on standard policy conditions nor collaboration on security devices.