Source · Select Committees · Treasury Committee

Recommendation 28

28 Accepted Paragraph: 185

The Treasury should consider whether Government intervention is required to support the insurance industry in...

Recommendation
The Treasury should consider whether Government intervention is required to support the insurance industry in finding a solution for pandemic insurance cover; and whether such support would be an effective use of public money. We also recommend that the Treasury investigates whether it needs to mitigate the risk of insolvencies in the insurance sector, should the Court’s ruling find in favour of policyholders.
Government response summary AI-generated
The Treasury is actively working with insurers and regulators to understand future pandemic insurance needs and to learn lessons. It also remains in close contact with the Prudential Regulation Authority to monitor the solvency of the insurance sector and will take all necessary steps to maintain financial stability following the test case judgment.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference: 185
Government Response Accepted
HM Government · verbatim extract Accepted
On your suggestion regarding pandemic insurance cover, HM Treasury is working closely with insurers, trade bodies and the regulators to understand what more the sector can do to help businesses and support the immediate economic recovery, as well as to learn lessons for potential future pandemics. HM Treasury also remains in close contact with the Prudential Regulation Authority following the test case judgement to monitor the solvency of the insurance sector and will take all necessary steps to maintain financial stability.
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