§ Mr. Teddy Taylor
To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the effects of the European Economic Commission proposals for the liberalisation of insurance services, in respect of(a) the separate proposals for the covering of mass and large risks and (b) the proposal for member states to prohibit an undertaking from calling upon its establishment in the country of the risk to carry out the provision of services in that same state.
§ Mr. Maude
We hope that the non-life insurance services directive, when it is implemented, will offer significant new opportunities for United Kingdom insurers in the European Community market. Because of the different regimes laid down in the directive for large and mass risks it is likely that most, if not all, of these opportunities will lie in the former area. Insurance companies will not be prohibited from carrying out business on a services basis in a member state where they already have an establishment where this business relates to large risks. Member states may impose restrictions in the case of mass risks where the local establishment of the undertaking is itself authorised to underwrite the class of risks in question.