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18/98

11 February 1998

INSURANCE COMPANIES ACT 1982: ISSUE AND WITHDRAWAL OF AUTHORISATION

DURING THE PERIOD 1 OCTOBER 1997 TO 31 DECEMBER 1997

Seven companies were authorised to carry on business in the United Kingdom under Section 3 of the Insurance Companies Act 1982 during the period 1 October to 31 December 1997. These are listed at table A.

The power under Section 11 of the Act to withdraw authorisation to effect new contracts of insurance was not used. This is shown at table B. Final withdrawal of authorisation under Section 13 was issued in respect of seven companies during the period. These are listed at table C.

Authorised insurance companies which have their head office in the European Community may become entitled to carry on business in the UK through a branch or provide insurance' in the UK - i.e. to insure risks in the UK without needing to obtain authorisation here. Similarly, such companies established in the UK may become entitled to carry on business in other EC states through a branch or provide insurance' in other Member States.

Table D1 shows the companies which have their head office in other EC Member States and have become entitled to carry on business through a branch in the United Kingdom and it indicates the nature of the risks which they may cover. Table D2 lists the companies which have their head office in another state of the European Economic Area (EEA) and which have become entitled to provide life or non-life insurance in the United Kingdom (i.e. to cover risks here from an establishment in another EEA state rather than through a local agency or branch).

During the period 1 October 1997 to 31 December 1997 the supervisory authorities of three EC member states were notified of three UK companies, which had notified the Directorate of their intention to begin to carry on business through a branch in that Member State. These are shown at table E1. Table E2 lists the United Kingdom companies which notified their intention to begin to provide insurance in other EEA states.

These powers were exercised by the Secretary of State for Trade and Industry. Responsibility for insurance matters has since been transferred from the Secretary of State for Trade and Industry to HM Treasury under a Transfer of Functions Order which came into force on 5 January 1998. Issue and withdrawal of authorisations under the Insurance Companies Act 1982 is now accordingly the responsibility of HM Treasury.

NOTES TO EDITORS

1. The classes of business for which a company may be authorised are set out in Schedule 1 and 2 of the Insurance Companies Act 1982.

2. This information supplements that published in the Insurance Annual Report 1996, available from The Stationery Office (formerly HMSO).

3. The Third EC Directive on Non-Life Insurance (92/49/EEC)and the Third EC Directive on Life Assurance (92/96 EEC) were implemented in the United Kingdom by the Insurance Companies (Third Insurance Directives) Regulations 1994, The Insurance Companies Regulations 1994 and The Insurance Companies (Accounts and Statements) (Amendment) Regulations 1994.

4. Regulations 45 and 46 of the Insurance Companies (Third Insurance Directives) Regulations 1994 amend Part IIIA of the Insurance Companies Act 1982 and insert two new Schedules (Schedules 2F and 2G) into the Act.

5. Schedule 2F contains the regime to be complied with where an EC company wishes to carry on business through a branch in the United Kingdom, or where an EC or EFTA company wishes to provide insurance in the United Kingdom under the freedom of services. Before the company concerned can begin to cover risks in the United Kingdom, the Secretary of State must be notified and supplied with specified information and confirmation of the solvency of the company.

TABLE A

Authorisations to carry on Insurance business in the UK under Section 3
of the Insurance Companies Act 1982 from 1 October 1997 to December 1997

TABLE B

Authorisations to effect new contracts of insurance withdrawn under Section 11
of the Insurance Companies Act 1982 from 1 October 1997 to 31 December 1997

TABLE C

Authorisations to carry on Insurance business in the UK finally withdrawn under section
13 of the Insurance Companies Act 1982 from 1 October 1997 to 31 December 1997

TABLE D1

Company established in another EC member state which has become entitled to carry on
business through a branch in the United Kingdom under Part IIIa of the Insurance
Companies Act 1982 between 1 October 1997 and 31 December 1997

* Numbered classes are classes of general business as classified in Part 1 of Schedule 2 to the Act. Only part of the class may be within the definition of 'Large' or 'other' risks (see note * above), as the case may be. 'All' means risks of all classes and parts of classes falling within the definition of 'Large' or 'other' risks, as the case may be.

TABLE D2

Companies established in other EEA states which have become entitled to provide life or non-life insurance in the UK from an establishment in another EEA state under Part IIIa of the Insurance Companies Act 1982 between 1 October 1997 and 31 December 1997

* 'Large' risks are defined in Section 96B of the Insurance Companies Act 1982, and 'other' risks (the so-called 'mass' risks) are all risks falling within Schedule 2 of the Act (general business) other than 'Large' risks. This is subject in each case to the exclusion of risks to which Part IIIA of the act (provision of insurance) does not apply (see Section 81A).

** Numbered classes are classes of general business as classified in Part 1 of Schedule 2 of the Act. Only part of the class may be within the definition of 'Large' or 'other' risks (see note * above), as the case may be. 'All' means risks of all classes and parts of classes falling within definition of 'Large' or 'other' risks, as the case may be.

TABLE E1

Companies authorised to carry on business in the UK which have notified the Secretary of
State of their intention to begin to carry on business through a branch in
another EC member state under Part IIIa of the Insurance Companies Act 1982
between 1 October 1997 and 31 December 1997.

*Numbered classes are classes of general business as classified in Part 1 of Schedule 2 to the Act. Only part of the class may be within the definition of 'Large' or 'other' risks (see note * above), as the case may be. 'All' means risks of all classes falling within the definition of 'Large' or 'other' risks, as the case may be.

TABLE E2

Companies authorised to carry on business in the United Kingdom which have notified the Secretary of State of their intention to begin to provide insurance in other EEA states under Part IIIa of the Insurance Companies Act 1982 between 1 October 1997 and 31 December 1997.

* 'Large' risks are as defined in Section 96B of the Insurance Companies Act 1982, and 'other' risks (the so-called 'mass' risks) are all risks falling within Schedule 2 of the Act (general business) other than 'Large' risks. This is subject in each case to the exclusion of risks to which Part IIIA of the act (provision of insurance) does not apply (see Section 81A).

** Numbered classes are classes of general business as classified in Part 1 of Schedule 2 to the Act. Only part of the class may be within the definition of 'Large' or 'other' risks, as the case may be.

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Press Notices 1998 January to June index