Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the level of support the prudential regulatory regime provides to ensure the competitiveness of the UK insurance industry.

The UK insurance industry is the largest in Europe and the third largest in the world. The government is aware of the important contribution of insurance to the nation’s economy and is keen to ensure the industry remains competitive. The Prudential Regulation Authority (PRA) is the independent regulator for major insurance firms in the UK, with a general objective to promote the safety and soundness of the firms it regulates.

The government continues to improve competitiveness and encourage growth in the sector. For example, as announced in the Autumn Statement, the government is consulting on draft regulations which will introduce a competitive regulatory and tax regime for Insurance Linked Securities in the UK. The regulations are designed to allow the UK to compete in this innovative area and will enhance our position as a global insurance hub.