Commons Sense

House of Commons · Ministers' Questions

Insurance Industry Regulation

Tuesday 1 February 2022 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • Minister holds regular six-weekly discussions with the Financial Conduct Authority on financial market regulation, including insurance.
  • The FCA is investigating the cladding scandal impact on insurance prices and has engaged with the industry to address potential market failure.
  • Progress is being made on Solvency II reform to unlock capital, involving discussions with the Prudential Regulation Authority and actuaries.

Topics (select to filter)

Questions & Answers

Q1 Shabana Mahmood Lab Birmingham Ladywood
Context

Discussions on how the Financial Conduct Authority regulates the insurance market.

Question

What recent discussions has he had with the Financial Conduct Authority on the regulation of the insurance industry?

Answer from John Glen

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.

Answered
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Q2 Shabana Mahmood Lab Birmingham Ladywood
Economy Housing
Context

Insurance companies are charging leaseholders high prices for buildings insurance due to the cladding scandal, raising concerns about transparency and regulatory action.

Question

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?

Answer from John Glen

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.

Partly answered

Not addressed: The specific ask for providing redress was not addressed directly.

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Q3 Theresa Villiers Con
Economy Business & Trade
Context

Reforming Solvency II could unlock billions for economic growth, job creation, and raising living standards.

Question

Can the Government make progress on reforming Solvency II to unlock capital and enhance prosperity?

Answer from John Glen

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.

Partly answered

Not addressed: The specific timeline or concrete actions were not provided, only general progress statements.

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