§ Dr. Cable:To ask the Chancellor of the Exchequer at what point after 1990 the trend towards lower inflation and lower interest rates was reflected in advice to the insurance industry on the likely implications for guaranteed annuity rate liabilities. [150437]
§ Miss Melanie Johnson[holding answer 15 February 2001]: The latest professional guidance on guaranteed annuity rate liabilities was issued by the Government Actuary's Department in January 1999 and December 1999.
§ Dr. CableTo ask the Chancellor of the Exchequer (1) what steps his Department took, between 1990 and the transfer of the insurance regulatory function to the Financial Services Authority to(a) investigate and monitor the reserves kept by insurance companies to satisfy their commitments under their guaranteed annuity rate policies, (b) monitor the extent of potential liabilities of insurance companies under guaranteed annuity rate policies and (c) ensure that insurance companies had (i) provided for and (ii) fully disclosed their potential liabilities under their guaranteed annuity rate policies within their annual report and accounts; [150438]
(2) on what occasions between 1990 and the transfer of the insurance regulatory function to the Financial Services Association his Department approved of the operation of non-guaranteed annuity rate policies from within the same fund or funds as guaranteed annuity rate policies. [150436]
§ Miss Melanie Johnson[holding answer 15 February 2001]: The Insurance Companies Act 1982 sets out the requirements on insurance companies to maintain an adequate margin of solvency. The regulator monitors companies on an on-going basis to ensure that regulatory requirements are met.
§ Dr. CableTo ask the Chancellor of the Exchequer what changes were made between 1990 and the transfer of the insurance regulatory function to the Financial Services Authority to the information requests required of insurance companies in respect of potential liabilities; and at whose behest such changes were made. [150439]
§ Miss Melanie JohnsonThe information that insurance companies must provide to the regulator is set out in the Insurance Companies Act 1982 and in consequent regulations. The regulator monitors companies on an on-going basis to ensure that regulatory requirements are met.