Insurance Industry Regulation 2022-02-01
2022-02-01
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
Discussions on how the Financial Conduct Authority regulates the insurance market.
What recent discussions has he had with the Financial Conduct Authority on the regulation of the insurance industry?
I hold regular discussions, usually on a six-weekly basis, with the chief executive of the Financial Conduct Authority on a range of issues regarding the regulation of financial markets, including the insurance market.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
Insurance companies are charging leaseholders high prices for buildings insurance due to the cladding scandal, raising concerns about transparency and regulatory action.
Insurance companies are exploiting the cladding scandal by charging leaseholders extortionate prices. The Treasury and the FCA have not acted while people face financial distress. Will the Treasury ensure that the FCA investigates this matter and provides redress for constituents?
The FCA has been looking at this matter, and last week my colleague wrote to the FCA to ask it to look at whether there is a market failure. Since then, it has written back with the Competition and Markets Authority, saying they are engaging with the industry and will produce a statement.
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Assessment & feedback
The specific ask for providing redress was not addressed directly.
Response accuracy
Q3
Partial Answer
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Context
Reforming Solvency II could unlock billions for economic growth, job creation, and raising living standards.
Can the Government make progress on reforming Solvency II to unlock capital and enhance prosperity?
We are making progress. Deep conversations with the Prudential Regulation Authority and actuaries on altering the risk margin and matching adjustments to release additional capital. We are also working closely with the insurance industry to see that this comes to pass.
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Assessment & feedback
The specific timeline or concrete actions were not provided, only general progress statements.
Response accuracy