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Dept of Trade and Industry

Answer

Mr. Prisk: To ask the Secretary of State for Trade and Industry what recent assessment she has made of the effect of increases in the cost of insurance cover for businesses upon the competitiveness of British business; and if she will make a statement. [101060] [Transferred] Mr. Nigel Griffiths: The Government is concerned by increases in the cost of insurance for businesses, particularly Employer's Liability Insurance (ELI). A recent survey of small businesses for the Small Business Survey found that only 2 per cent. of firms spontaneously cited insurance as a major obstacles to the success of the business, although when prompted 27 per cent. of firms said insurance was an obstacle to success. It is difficult to assess the effect on competitiveness of these increases in the cost of insurance. The Government's review of the ELI system, led by the Department for Work and Pension, aims to examine the impact of the current system on employers and make recommendations for change accordingly. It is due to report in Spring 2003; details are available at http://www.dwp.gov.uk/publications/dwp/2002/health- safety/eli-review/index.htm. The Office of Fair Trading is currently engaged in a short study of the liability insurance market, also due to report in Spring 2003, which will help inform the Government's review of the ELI system.

Secondary information

Type

Written question

Reference

101060; 400 c1289W;400 c1277W

Session

2002-03

Subjects

Costs Business Fees and charges Insurance Increases Employers' liability Trade competitiveness

Link

View this Written question on www.publications.parliament.uk