§ Mr. Whitakerasked the President of the Board of Trade how many insurance companies have failed in each of the last five years; how many motorists were insured with these companies; how many other companies his Department are at present investigating; and how many insurance companies at present have less than £100,000 capital each.
§ Mr. JayThe number of motor insurance companies which have failed in each of the last five years was as follows:
1962 Nil 1963 2 1964 Nil 1965 Nil 1966 2 1967 2 Approximately 500,000 motorists were insured with these companies.
The Board of Trade is at present investigating the affairs of five motor insurance companies.
According to the latest information available to the Board of Trade 33 insurance companies carrying on motor vehicle business have a paid up share capital of less than £100,000. The amount of the paid up share capital of an insurance company is a less important guide to its stability than, in particular, its free assets i.e. the excess of its assets over its liabilities.