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Written Question
Small Businesses: Insurance
Thursday 9th January 2025

Asked by: Anna Sabine (Liberal Democrat - Frome and East Somerset)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of putting a cap on insurance costs for small businesses.

Answered by Tulip Siddiq

Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics. The Government does not usually intervene in these decisions by insurers, as this could damage competition in the market.

The Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is the independent body responsible for regulating and supervising the financial services industry.

The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.


Written Question
Insurance: Costs
Thursday 9th January 2025

Asked by: Anna Sabine (Liberal Democrat - Frome and East Somerset)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential implications for her policies of trends in the cost of insurance.

Answered by Tulip Siddiq

Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics. The Government does not usually intervene in these decisions by insurers, as this could damage competition in the market.

The Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is the independent body responsible for regulating and supervising the financial services industry.

The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.