HC Deb 28 February 1972 vol 832 cc30-1
38. Sir Robin Turton

asked the Secretary of State for Trade and Industry what action he proposes to take to amend the law relating to insurance.

Mr. John Davies

In pursuance of the review which I announced last March, extensive consultations with the insurers and other interested parties are in progress. I shall of course take into account the report of the V. & G. Tribunal. I hope to reach conclusions as to the nature of any amendments to the Insurance Companies Acts which may be necessary during the early summer.

Sir R. Turton

Will my right hon. Friend take note of the difficulties that insurance brokers find under the present state of the law when insurance companies become insolvent or are placed under restriction in pursuance of the operation of his powers under the Companies Act?

Mr. Davies

I am indeed very conscious of this problem and am in close consultation with the organisations representing the insurance broking interests on matters such as this.

Mr. Dell

Is the right hon. Gentleman aware that one piece of hiving off which would be welcome is that of the Insurance and Companies Division of his Department, making it instead a statutory agency? Is that possibility being considered during the right hon. Gentleman's present review?

Mr. Davies

The matters that I have specifically under review in relation to insurance do not at the moment envisage the hiving off of that activity, though I am not necessarily averse to considering any such proposition if it is put before me.