§ Mr. CousinsTo ask the Chancellor of the Exchequer on how many occasions in each of the last five years his Department has been notified that insurance providers have been in breach of the required solvency ratios; and what corrective action his Department took. [90935]
§ Ms HewittNeither the Financial Services Authority (FSA), as contractor for the Treasury, nor the Department of Trade and Industry, as the Department previously responsible, maintains systematic information on notifications of such.
The Insurance Companies Act 1982 provides for the authorisation and prudential supervision of companies carrying out insurance business in the United Kingdom. All UK authorised insurance companies are required to maintain a margin of solvency. If it appears that an authorised insurance firm has failed to maintain the required margin, it may be required to implement a plan or scheme for restoring a sound financial position. In the last five years, these requirements have been exercised as follows:
Year Cases 1994 11 1995 5 1996 5 1997 3 1998 5 Source:
Insurance Annual Reports; published by The Stationery Office
Additional action may be taken, depending on the circumstances of the case and the perceived risk to policyholders.