§ The Minister of State, Department of Trade and Industry (Lord Fraser of Carmyllie) rose to move, That the draft order laid before the House on 24th June be approved [26th Report from the Delegated Powers Scrutiny Committee].
§ The noble and learned Lord said: My Lords, the draft order is concerned with the removal of three burdens imposed upon the insurance industry under the Insurance Companies Act 1982. The proposal has completed the parliamentary scrutiny procedures for deregulation orders under the Deregulation and Contracting Out Act 1994. The Delegated Powers Scrutiny Committee of your Lordships' House and the Deregulation Committee of the other place have separately assessed and reported on the proposal.
§ The committee concentrated on three key matters set out in the Act: whether the proposed order would remove a burden; whether it allowed for necessary protection to be maintained; and whether there had been adequate consultation. Both committees have indicated that they are content with the draft order as it stands.
§ The purpose of the order is, first, to remove the requirement on all life assurance companies under Section 18(3) of the 1982 Act to prepare a statement of its long-term business once every five years. There is an incidental repeal of Section 42(1)(c). The industry estimates that that measure will save it some £6 million in a full five-year cycle.
§ The second burden is to remove from all insurance companies the requirement under Section 22(2) of the 1982 Act to show in their annual returns the names of connected intermediaries. It is estimated that that measure will save the industry as a whole some £500,000 per annum.
837§ Finally, the order amends Section 22(1) of the Act to allow some copies of the annual returns to be submitted in electronic format. I beg to move.
§ Moved, That the draft order laid before the House on 24th June be approved [26th Report from the Delegated Powers Scrutiny Committee].—(Lord Fraser of Carmyllie.)
§ On Question, Motion agreed to.