HC Deb 11 November 1977 vol 938 cc311-2W
Mr. McCrindle

asked the Secretary of State for Trade if he is able to exclude small insurance companies from the solvency requirements of the Insurance Companies (Solvency: General Business) Regulations 1977: if he will exercise such powers; and in which way he intends to exercise them.

Mr. Clinton Davis:

The regulations enable my right hon. Friend to exempt those insurance companies carrying on general business in Great Britain, whose annual premium income from such business is less than the amount specified in Schedule 5, paragraph 10(c), from the requirement to maintain a solvency margin which is not less than the minimum guarantee fund, but not from the other solvency requirements applicable to them. My right hon. Friend will be prepared to consider exercising this power in respect of companies which are unable to meet the full requirements of the regulations where he is satisfied that the ex- emption will not prejudice the position of policyholders.