§ Mr. Ernest G. Perryasked the Secretary of State for Trade if he will make a statement on the solvency and stability of the British insurance industry.
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§ Mr. Clinton DavisThe British insurance industry continues to have a justified reputation world wide for its dependability and makes a major contribution of about £400 million a year to our foreign currency earnings. The industry has dealt remarkably well with the exceptional situation that it has had to face at home and abroad in the past year. I am confident that the industry generally is sound and stable. A few smaller companies have however got into difficulties and the industry has shown its strength by mounting voluntary schemes to rescue most of the policy holders concerned. Nevertheless it is sensible for us now to give a firmer and more organised security to policy holders and we have, therefore, announced a compulsory scheme as an additional precaution.