Insurance Companies Act 1973

HC Deb 10 June 1974 vol 874 c1218

18. Mr. McCrindle

asked the Secretary of State for Trade if he is satisfied with the operation of the Insurance Companies Act 1973.

Mr. Clinton Davis

The Act will not be fully operative until a number of detailed regulations have been made, but good progress is being made in the complex task of preparing them. While in many respects the Act appears to be working satisfactorily, it is premature to come to a conclusive judgment.

Mr. McCrindle

Is the Minister satisfied that the main purpose of the Act, namely, to protect policy holders from insecure companies, is being achieved without preventing the formation of viable new companies or unnecessary control of existing institutions?

Mr. Davis

With the co-operation of the British Insurance Association and of the whole insurance business, policy holders have been protected—for which, in the present very difficult situation, we should be grateful. Obviously risk-taking is involved in this business, and no form of supervision can eliminate the chance of failure, but the fact that this co-operation has taken place has been most satisfactory.