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Insurance Companies

Volume 890: debated on Monday 14 April 1975

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asked the Secretary of State for Trade if he will detail fully the action taken by his Department by regulation or administrative action since the Insurance Companies Amendment Act 1973 came into force to safeguard the solvency of insurance companies.

Regulations have been made under Sections 7, 41 and 43 of the Insurance Companies Amendment Act 1973 in respect of the identification of long-term assets and liabilities, and

Section
Power1973 Act1974 ActTimes used
Restriction on new business13294
Requirements about investments1430140
Maintenance of assets in United Kingdom1531168
Custody of assets1632148
Limitation of premium income173377
Actuarial investigations183487
Acceleration of information required by accounting provisions193510
Obtaining information2036209
Residual power to impose requirements for protection of policyholders2137112
Notice of proposed exercise of power to restrict new business223850

control of advertisements and intermediaries, and under Section 78 of the Insurance Companies Act 1974 in relation to the valuation of assets. The Department examines each company's statutory returns, and in the light of this and of any other relevant factors discusses with the company any action that may be appropriate. Frequently such action is taken on an informal basis, but between 25th July 1973 and 31st March 1975 the Department's powers of intervention under the 1973 and 1974 Acts were used as follows: