Last year (see update ) the UK Government consulted upon a series of proposed amendments to insolvency arrangements for insurance companies. The proposed amendments included clarifications and enhancements to the court’s powers under section 377 of the Financial Services and Markets Act 2000 to order a reduction of the value of an insurer’s contracts (a ‘write-down’). The proposed amendments also introduced new provisions to help reduce business disruption and losses for insurers in distress as well as a change to the protection provided by the Financial Services Compensation Scheme.
The Government has now published a detailed response to the feedback received to the consultation.
The response paper states that the Government will put forward legislation when Parliamentary time permits.