Financial services firms cannot be sure that the regulator will not make mistakes similar to the mishandled media leak which sent insurance stocks plunging last year, a Treasury minister admitted yesterday.
Andrea Leadsom, the economic secretary and City minister, stated: “We would all hope that something like that wouldn’t happen again. But it shows that even with the most robust of conditions things like that can happen.” She continued: “The thing to worry about is how it’s dealt with. I don’t think the insurance sector should read into it that there’s an ongoing problem.”
The minister made the remarks following a speech at Lloyd’s of London in which she invited insurance companies to contact the government with their concerns. “Insurance is a key part of the City,” she said, adding that the sector is “a top priority for developing more economic growth and more jobs”.