asked the Secretary of State for Trade if the proposed computer based system for aiding the insurance division of his Department is intended to have the capability to protect insurance policy holders against the type of events which overtook Nation Life.
A study of the scope for applying computer methods to the supervisory work of the insurance division is being made by consultants. It is hoped that use of a computer will expedite and facilitate the critical examination of the very large quantities of information to be provided by insurance companies in compliance with the recent legislation and the regulations that are being made. If this can be done it would further improve the supervisory arrangements by aiding the early detection of difficulties in insurance companies and the taking of remedial action. The use of a computer, however, will not remove the difficult judgments that have to be made; nor will this aid, although valuable and used with the best sophisticated methods of supervision, ensure that an insurance company never fails.