HC Deb 13 December 1938 vol 342 c1787
18. Mr. Day

asked the President of the Board of Trade whether, in view of the fact that the majority of foreign countries demand heavy deposits from insurance companies of other nationalities established in their countries to transact insurance business, he will consider introducing legislation adopting similar principles in Great Britain?

Mr. Stanley

The countries which impose onerous conditions on the operations of British insurance companies are not, in general, those whose nationals are engaged in insurance business in this country. The proposed action would, therefore, be inappropriate, and to impose larger deposits on all companies operating in the United Kingdom would be contrary to the recommendations on the subject of deposits made by the Departmental Committee on the Assurance Companies Act, 1909, which reported in 1927, and to those of the Departmental Committee on Compulsory Insurance, which reported in 1937.

Mr. Day

Is it not a fact that most of the foreign countries impose these deposits?

Mr. Stanley

Yes; many of the foreign countries impose these deposits.