Is it a case of collusion, or just a case of the regulator not understanding insurance? It’s a question going around the giant German insurance industry after that country’s version of the Australian Competition and Consumer Commission, the Bundeskartellamt, accused seven major insurers of colluding over premiums.

The accused companies include Allianz, Gerling, Generali and subsidiaries of Axa and Munich Re. The agency said they have been fixing the prices of liability, casualty and property cover. But lawyers say the regulator has simply misunderstood the way risk is priced. The companies have six weeks to answer to the charges.