Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential effect of the UK leaving the EU on the (a) regulation of the insurance industry and (b) implementation of the Solvency II Directive.

Action taken by the Government and the Bank of England over the last six years has substantially strengthened the resilience of the financial system, and the authorities have all the necessary tools in place to protect financial stability.

Following the referendum result, the Government must now prepare for a negotiation to exit the EU to ensure that the interests of all parts of the UK are protected and advanced. I want us to agree an economic relationship with the rest of Europe that provides for the best possible terms of trade in financial services, including insurance.

The Prime Minister has been clear that the negotiation for Britain’s future relationship with Europe will begin under a new Prime Minister. In the meantime, and during the negotiations that follow, there will be no change to the way that insurance is sold or regulated.

Much financial regulation currently applicable in the UK derives from EU legislation, including Solvency II. Until negotiations are concluded, we remain a full member of the EU and must meet our obligations as a member of the EU.