WEDNESDAY, MAY 19, 1982
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ON THE REQUIREMENT FOR REPORTING OF FINANCIAL INFORMATION WHICH WAS OPPOSED BY A MINORITY WITHIN THE INDUSTRY, MR JE AFFRESON SAID THE GOVERNMENT HAD IN RESPONSE GONE AS FAR AS IT THOUGHT IT COULD TO REDUCE THE BURDEN WITHOUT SERIOUSLY AFFECTING THE ABILITY OF THE INSURANCE AUTHOR ITY TO CARRY OUT HIS CONTINUOUS SUPERVISION.
THE REQUIREMENT FOR PRODUCTION OF A COPY OF THE COMPANY'S ACCOUNTS TO BE MADE AVAILABLE TO THE PUBLIC EXISTS IN OTHER JURISDICTIONS AND INDIVIDUAL COMPANIES IN NO WAY APPEARED TO HAVE SUFFERED, HE ADDED.
REPLYING TO THE CRITICISM THAT THE GOVERNMENT HAD DEALT WITH THE POWER OF INTERVENTION OF THE INSURANCE AUTHORITY IN TOO MUCH DETAIL, MR JEAFFRESON SAID, +OUR ANSWER IS THAT, SO THAT ALL CONCERNED KNOW WHERE THEY STAND, POWERS OF INTERVENTION AND THE CIRCUMSTANCES IN WHICH THEY CAN BE USED, NEED TO BE CLEARLY SPELT OUT. +
CONCERN HAS BEEN EXPRESSED ABOUT THE TRANSITIONAL PROVISIONS WHICH SUBJECT COMPANIES ALREADY WRITING BUSINESS TO A SECOND AUTHOR ISATION PROCESS WITHIN 18 MONTHS,
*THIS IS SO. BUT IT WILL NOT BE ONEROUS,+ MR JEAFFRESON SAID.
AS TO THE CRITICISM THAT THE BILL DOES NOT DEAL WITH BROKERS, MR JEAFFRESON ACKNOWLEDGED THAT IT WAS VALID, BUT EXPLAINED THAT THE BILL TACKLED ONLY THE BASIC PROBLEM OF THE INSURANCE MARKET, THE FINANCIAL STRENGTH OF THE INSURERS THEMSELVES, AND DID NOT DIRECTLY REGULATE BROKERS OR INTERMEDIARIES, THE PROBLEM OF WHICH WILL BE DEALT WITH SEPARATELY.
THE BILL HOWEVER DOES AT LEAST PROVIDE THAT IT IS AN OFFENCE FOR ANYONE TO MAKE MISLEADING OR DECEPTIVE STATEMENTS TO POTENTIAL POLICY HOLDERS.
+PROBABLY THIS DOES NOT GO FAR ENOUGH TO KEEP BROKERS UNDER CONTROL. BUT A SUB-COMMITTEE OF THE LAW REFORM COMMITTEE IS LOOK ING INTO THE WHOLE QUESTION OF BROKERS. WE AWAIT THE OUTCOME OF THE IR DEL IBERATIONS, HE SAID.
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