HC Deb 25 January 2000 vol 343 cc211-2W
Mr. Efford

To ask the Chancellor of the Exchequer (1) what representations he has received regarding the regulation of permanent health insurance companies by the Financial Services Authority; and if he will make a statement; [106494]

(2) what representations he has received regarding third party access to the Financial Services Authority's single ombudsman service for employees covered by permanent health insurance; and if he will make a statement; [106497]

(3) if permanent health insurers will be required to be authorised by the Financial Services Authority; [106498]

(4) if he will list the criteria under which businesses with group permanent health insurance policies can complain to the insurance industry's ombudsman service; and if he will make a statement; [106502]

(5) if group permanent health insurance policies will be covered by the Financial Services Authority's ombudsman scheme; [106499]

(6) how many businesses have complained to the insurance industry's ombudsman service during the last year for which statistics are available; and how many complaints were successful. [106503]

Miss Melanie Johnson

Permanent health insurers carrying on business in the United Kingdom will be required to be authorised either by the Financial Services Authority (FSA) or, in the case of European Community companies incorporated and with their head offices in another member state, to be authorised in accordance with Article 6 of the first long term insurance Directive.

No data are available which would distinguish enquiries and complaints brought by businesses as distinct from individuals.

The Treasury receives considerable correspondence on a range of issues concerning the insurance industry, but representations about the regulation of permanent health insurance companies have not been especially prominent.

The criteria that render a complaint eligible for consideration under the rules of the two main Ombudsmen schemes are determined by the schemes' terms of reference and by the interpretation of those terms by the parties to those arrangements.

The Financial Services Authority and the Financial Services Ombudsman Scheme issued a consultation paper (FSA Consultation Paper 33) last November on various aspects of the proposed scheme. The consultation ends on 10 February 2000. Copies of the consultation document are available from the FSA.