Insurance Companies Act 1982: Issue and withdrawal of authorisation

The report for the period shows that under the Act:

One company was authorised to carry on business in the UK under Section 3 of the Act (Table A);

the power under Section 11 of the Act to withdraw authorisation to effect new contracts was used in respect of one company (Table B);

final withdrawal of authorisation under Section 13 of the Act was issued in respect of two companies (Table C).

In addition:

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 UK 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 UK (i.e. to cover risks here from an establishment in another EEA state rather than through a local branch or agency);

Table E1 shows that the supervisory authorities of two EC member states were notified of two UK companies, which had notified the UK supervisory authority of its intention to begin to carry on business through a branch in that Member State; and

Table E2 lists the UK companies which notified their intention to begin to provide insurance in other EEA states.

Notes for editors

The classes of business for which a company may be authorised are set out in Schedules1 and 2 of the Insurance Companies Act 1982.

This information supplements that published in the Insurance Annual Report 1997, available from The Stationery Office (formerly HMSO).

Authorised insurance companies which have their head office in the European Economic Area (EEA) may become entitled to insure risks in the UK either through a branch or by the provision of cross border services in the UK without needing to obtain authorisation here. Similarly, companies with their head office in the UK may become entitled to carry on business in other EEA states through a branch or provide cross border services in other Member States.

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 UK by the Insurance Companies (Third Insurance Directives) Regulations 1994, the Insurance Companies Regulations 1994 and the Insurance Companies (Accounts and Statements) (Amendment) Regulations 1994.

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.

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

Schedule 2G contains the regime to be complied with before a UK company can begin to carry on business through a branch in another EEA State or to provide insurance under the freedom of services in another EEA State. This regime includes a requirement that the company must notify the UK supervisory authority of its intentions and provide them with specified information.

With effect from 1 January 1999 the Financial Services Authority has been authorised to exercise functions of the Treasury under insurance legislation pursuant to the Contracting Out (Functions in Relation to Insurance) Order 1998.

Appended information

top

top

top

top

top

top

top