§ Mr. Malcolm BruceTo ask the President of the Board of Trade what is his estimate of the number of insurance and reinsurance companies approved by his Department which have failed since 1979 leaving some policy holders with claims not paid in full; and how many such companies accepted reinsurance through Lloyd's of London. [34024]
§ Mr. NelsonSince 1979, approximately 40 insurance companies authorised by my Department have become insolvent. Whether such companies had placed some or all of their reinsurance through Lloyd's of London was and is a commercial matter for the insurance companies concerned and Lloyd's. Valid claims on such reinsurance policies placed at Lloyd's will have been paid in the normal way.
§ Mr. BruceTo ask the President of the Board of Trade what proposals he has to improve the regulation and operation of the Lloyd's of London insurance business. [34023]
§ Mr. NelsonThe regulatory regime at Lloyd's has developed significantly since the passing of the Lloyd's Act 1982, and following recommendations of the Neill committee and the Walker committee. Lloyd's has in hand further important changes, set out in its regulatory plan published on 17 January 1996, which will improve regulatory standards in the market, with the aim of delivering a standard of regulation which is at least on a par with best practice in the regulation of other sectors of the financial services industry. Last summer I announced my intention to set up a review of the future statutory basis of the regulatory arrangements at Lloyd's. In view of the rapid changes that are in train at Lloyd's, this review will not start until next year, after Lloyd's58W reconstruction and renewal proposals have reached their conclusion and the future characteristics of the market have become clearer.