HC Deb 01 July 1999 vol 334 c261W
Ms Lawrence

To ask the Chancellor of the Exchequer what plans he has for regulation of intermediaries dealing in general insurance. [89460]

Ms Hewitt

As the former Economic Secretary my hon. Friend the Member for Airdrie and Shotts (Mrs. Liddell) announced on 27 July 1998,Official Report, columns 23–24, the Financial Services and Markets Bill, now before the House, will provide for the repeal of the Insurance Brokers (Registration) Act 1977. Subject to the approval of Parliament, this will end the statutory status of the Insurance Brokers Registration Council (IBRC). The Joint Committee on Financial Services and Markets' recent report on the draft Bill supported this approach.

I am grateful to the current IBRC members for their work in continuing to serve on the Council in the interests of the insurance broking community during the present transitional period. To assist them in that task, I have today, under existing powers, nominated three new members to fill vacancies on the Council, to serve until the Council's statutory status ends:

  • Ronald Armstrong OBE
  • Bryan Lincoln
  • Dr. Oonagh McDonald CBE.

I am pleased that, since my right hon. Friend's announcement, the insurance industry, including general insurance intermediaries, has risen to the challenge she outlined. A broad-based range of support has developed for the General Insurance Standards Council (GISC), a new voluntary body to promote high standards of professional conduct among general insurance intermediaries.

The GISC is committed to strengthening industry standards and developing general insurance intermediaries' services to the public in all parts of the market. It plans to complement the statutory responsibilities of the Financial Services Authority (FSA) while stripping away unnecessary regulatory requirements on general insurance intermediaries. The GISC has gathered support with impressive speed. If it can fulfil its promise, it will provide valuable services to both general insurance intermediaries and their customers.

There may in future be a case for statutory regulation of general insurance intermediaries. If so, the Financial Services and Markets Bill contains a provision which would enable the Treasury to specify regulated activity, and to give regulatory responsibility to the FSA. For the moment, I have no plans to specify advice on general insurance as a regulated activity.