HC Deb 23 April 1996 vol 276 c72W
Mr. Steen

To ask the President of the Board of Trade what is the estimated annual saving to business from the Deregulation (Insurance Companies Act 1982) Order 1996. [25763]

Mr. Oppenheim

The order has three main purposes:

  1. (a) the abolition of section 18(3) of the Insurance Companies Act 1982 ("the Act") which requires a five-yearly statement of a life assurance company's business. The life assurance industry has estimated that these measures will save £6 million for the industry over a five-year cycle;
  2. (b) the abolition of section 22(2) of the Act which requires each insurance company to return a statement of connected intermediaries. This measure is estimated to save the insurance industry in excess of £500,000 annually; and
  3. (c) amendment of sections 22(1), 42(4) and 82 of the Act in order to allow insurance companies to submit copies of their annual returns in an electronic format. This measure is for the convenience of the industry and cost savings will be small, representing the difference between the cost of production and submission of four paper copies of the return, and that of producing a diskette. The administrative cost to companies of taking corrective action, if required to do so under section 22(5) of the Act, should also be reduced.