§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what powers he has under the Insurance Companies Act 1982 to preserve the independence of insurance companies and societies from merger with banks and building societies; and how those powers have been used.
§ Mr. RedwoodThe Insurance Companies Act 1982 contains no general restrictions on mergers between insurance companies and banks and building societies.
260WHowever, there are limitations on the extent to which insurance companies may carry on non-insurance business. More specifically, the Act gives the Secretary of State a range of intervention powers which are exercisable when the interests of policyholders are at risk. Further, in approving changes of control of insurance companies and in authorising companies to carry on insurance business in the United Kingdom the Secretary of State is required (under sections 61 and 7 of the Act respectively) to be satisfied that a proposed controller, whether a company or an individual, is fit and proper to hold that position.
In exercising these powers the Secretary of State looks at each case individually.