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Insurance Companies

Volume 405: debated on Tuesday 20 May 2003

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To ask the Chancellor of the Exchequer what plans he has to amend the rules relating to the minimum solvency level of insurance companies; and if he will make a statement. [114385]

Implementing rule changes affecting the solvency requirements for insurance companies is the responsibility of the Financial Services Authority (FSA). The FSA is currently consulting on the necessary rule changes to implement Directive 2002/12/EC and Directive 2002/13/EC of the European Parliament and of the Council as regards solvency margin requirements for life and non-life insurers respectively. Later this year, the FSA will be consulting on their intention to implement new 'enhanced' capital requirements and to take forward the framework set out in CP136 (Individual Capital Adequacy Standards) to implement a Basel type 'three pillar' approach for insurers.