92001E0334

WRITTEN QUESTION E-0334/01

by John Bowis (PPE-DE) to the Commission

(13 February 2001)

Subject: Lloyd's Insurance

1. Further to the answer to Question E-3473/00(1) given by Commissioner Bolkestein on behalf of the Commission on 21 December 2000, will the Commission say under which UK law and in which year the first Council Directive 73/239(2) was correctly implemented in the UK and what steps have been taken by the Commission since that date to ensure that this law was properly implemented?

2. With regard to complaint number 99/5049 will the Commission explain:

(a) the continuing delays in reaching a decision as to the lack of solvency certification as directed by Directive 73/239 and implemented in the UK Insurance Co. Act 1982?

(b) whether they have received any response to their letter to the British Government of 16 October 2000?

(c) what deadlines were defined in the letter of 16 October?

(d) whether the UK Government has complied with the stated deadlines?

(1) OJ C 163 E, 6.6.2001, p. 132.

(2) OJ L 228, 16.8.1973, p. 3.

Answer given by Mr Bolkestein on behalf of the Commission

(30 May 2001)

1. The operation and regulation of Lloyd's is extremely complex. The Commission's understanding is that the primary requirements of Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance as regards Lloyd's were first implemented into British national law by means of the Insurance Companies Act 1982 and amending legislation. The form of the audit certificates was determined by The Insurance (Lloyd's) Regulations 1983.

In view of the substantial number of complaints received by the Commission from disaffected Lloyd's Names, the Commission is re-examining the proper application of the Community requirements for Lloyd's under the Directive.

2. With regard to complaint 99/5049:

a) the administrative examination has taken longer than usual because of the file complexity. The allegations made are extremely grave and are being carefully examined by the Commission. With regard to the required solvency certificates, the British authorities have confirmed that these have been provided in accordance with the requirements of Council Directive 73/239/EEC. The Commission is currently examining the nature of the solvency certificate provided. The British authorities are fully co-operating with the Commission in this examination.

b) The Commission has received an extensive response to its letter to the British authorities dated 16 October 2000.

c) The letter of 16 October gave a deadline of six weeks. In view of the comprehensive and detailed nature of the questions raised by the Commission's letter which related to events going back over almost 20 years, the Commission granted an extension of this deadline to the British authorities by letter dated 5 December 2000.

d) The British authorities submitted an extensive response dated 25 January 2001. This letter is currently being examined by the Commission as described above.