§ Mr. Mike O'BrienTo ask the President of the Board of Trade what are his departmental estimates for the liability for payment by Lloyd's names during the years(a) 1995 and (b) 1996; and what are his estimates of how much can be met without recourse to Lloyd's central funds. [22071]
§ Mr. Jonathan Evans[holding answer I May 1995]: The Department neither needs nor is required to make such estimates in the exercise of its responsibilities under sections 83 to 86 of the Insurance Companies Act 1982. Any estimate of the amounts to be called from Lloyd's names would be speculative as the cash calls on names have yet to be declared during 1995, and the results to be declared during 1996 cannot be predicted with any precision.
§ Mr. Mike O'BrienTo ask the President of the Board of Trade what supervision his Department will make of those Lloyd's names who have become insolvent and whose calls cannot be supported by Lloyd's funds supervised by his Department. [22072]
§ Mr. Jonathan Evans[holding answer 1 May 1995]: Any Lloyd's name who failed to meet the solvency requirement prescribed in section 83 (4) and (5) of the Insurance Companies Act 1982 would become subject to the Secretary of State's supervisory powers contained in part II of the Act. The particular use of those powers would depend on the circumstances of the case, but would include imposition of such requirements as may be desirable to protect policyholders against the risk that the name's underwriting liabilities would not be met.
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§ Mr. Mike O'BrienTo ask the President of the Board of Trade what estimates have been made by his Department for Lloyd's losses (a) for 1992 and (b) for 1993 which are (i) called but unpaid, (ii) declared losses but uncalled and (iii) potential losses expected but as yet undeclared; and what impact these estimates would have on determining the solvency of Lloyd's. [22099]
§ Mr. Jonathan Evans[holding answer 1 May 1995]: The Department neither needs nor is required to make estimates of the specific figures cited in the question in the exercise of its responsibilities under sections 83 to 86 of the Insurance Companies Act 1982. But in the compilation of the solvency returns all losses, whether or not called and/or paid, will have been brought properly into account in determining the liabilities for solvency purposes, and prudent provision will have been made for losses which have been incurred but not reported.
§ Mr. Mike O'BrienTo ask the President of the Board of Trade what is his estimate of the number of Lloyd's names who could potentially be unable to meet calls on their assets if Lloyd's were unable to stand behind a call. [22073]
§ Mr. Jonathan Evans[holding answer 1 May 1995]: The Department neither needs nor is required to make such an estimate in the exercise of its responsibilities under sections 83 to 86 of the Insurance Companies Act 1982. Since all the auditors' certificates required under section 83 of the Insurance Companies Act 1982 were furnished in the most recent solvency test, the question did not arise.