§ Mr. Oakesasked the President of the Board of Trade what representations he has received concerning the financial stability of certain motor insurance companies; and what action he is taking.
§ Mr. Arthur Lewisasked the President of the Board of Trade what representations he has recently received from the British Insurance Association concerning 377W motor insurance companies without satisfactory financial backing; and what reply he has sent.
§ Mr. JayThe Board of Trade has received representations from time to time from the British Insurance Association and others about the solvency of certain motor insurance companies. The Board keeps a constant watch on insurance companies of which the solvency is in doubt and has explained this, where appropriate, in reply to the representations.
§ Mr. Arthur Lewisasked the President of the Board of Trade whether he is aware of the intentions of the insurance companies to increase car insurance premiums; and what action he will take to bring these proposals within the Government's prices and incomes policy, as recently announced.
§ Mr. JayThe nature of insurance requires some flexibility in relating premiums to risks and I have agreed that the changes, already announced by insurers, in the rates of premium, in some cases upwards and in others downwards, for the insurance of private cars may be brought into effect. The insurers have informed me that they will not increase premiums to recoup themselves for increased costs.