HC Deb 20 January 1993 vol 217 cc310-1W
31. Mr. Paice

To ask the President of the Board of Trade what representations he has received regarding the withdrawal of cover for terrorist incidents by insurance companies.

Mr. Heseltine

I have received various representations from a broad spectrum of industry and commerce regarding the announcement that insurance companies were to withdraw insurance cover for terrorist attacks. In response to this problem I announced on 21 December that the Government have decided in principle to act as reinsurer of last resort for terrorist attacks against mainland GB non-domestic property and related risks from January 1993.

Dame Peggy Fenner

To ask the President of the Board of Trade if he will take steps to ensure that the rating schedule issued by Associated British Insurers in connection with the Government scheme for terrorism insurance cover, does not discriminate heavily against businesses based outside the eight major urban areas; and if he will consider asking the ABI to review these rates.

Mr. Neil Hamilton

The premium rates for terrorist cover, as with all forms of insurance, seek to reflect perceived levels of risk and are therefore weighted towards higher-risk areas. The rates will be reviewed from time to time.

Dame Peggy Fenner

To ask the President of the Board of Trade what consultations he has had with retailers and insurance brokers on the Government scheme for terrorism insurance cover.

Mr. Neil Hamilton

I met representatives of the British Insurance and Investment Brokers Association on 1 December 1992, and my officials have been in regular touch with them since then. I met representatives of the British Retail Consortium on 19 January.

Dame Peggy Fenner

To ask the President of the Board of Trade if he will consider extending the Government scheme on insurance cover for terrorism to companies based outside the United Kingdom, in particular captive insurance companies.

Mr. Neil Hamilton

These questions are currently under consideration.