§ 38. Mr. Collinsasked the President of the Board of Trade if he is aware that the expenses and commission paid by insurance companies in the transaction of fire and accident insurance amount to 40 per cent. of premium income; and if he will institute an inquiry into the present system with a view to reducing the cost and improving the service to the insuring public.
§ Mr. MarquandThe general position is as represented by my hon. Friend, but the percentage mentioned is an average figure based on the business both at home and overseas, the overseas business comprising by far the greater part. The companies are fully alive to the importance of keeping costs as low as possible, while providing an adequate service to the insuring public. I do not think that an inquiry would serve any useful purpose.
§ Mr. CollinsIs the Minister aware that, in the case of some insurances, such as third party motor car insurance, there is a statutory obligation to insure, and does not he think, therefore, that it is the duty of his Department to make certain that the public are getting insurance at the lowest possible cost?
§ Mr. MarquandThe practice of insurance companies is under continual observation by the Board of Trade.