The British Insurance Brokers’ Association (BIBA) has urged the UK government to commit to no further increases to Insurance Premium Tax (IPT).
The government has also been urged to negotiate for single market access in the EU exit.
Besides, the trade representative body has also asked the Financial Conduct Authority (FCA) to make cost-effective supervision a priority for small insurance brokers following a raise of 70% in regulation costs.
BIBA’s appeals were outlined in its 2017 Manifesto titled ‘Enabling the Insurance Market’ which awas unveiled in the Houses of Parliament.
BIBA executive director Graeme Trudgill said: “We welcome the support given to this Manifesto from the FSB, CII, ABI, brokers, insurers and importantly Government in facing down numerous challenges including a 70% increase in the cost of regulation for small brokers, a doubling in Insurance Premium Tax and the EU exit.
“We all need to work together to enable our brokers to create new innovative insurance solutions to cater for the ever changing threats faced by our customers.”
The first issue in the manifesto was IPT with BIBA showcasing that 50 million policy holders will see the tax doubled between October 2015 and June 2017 through successive increases by 12%.
As far as its appeal for negotiations for single market access is concerned, BIBA wants the government to find a way to achieve a minimum transition period of five years.
Its manifesto further illustrated the need for a solution for both EU workers in the UK insurance industry as well as UK insurance professionals working across Europe.
BIBA revealed that it wants the government to consider a sectoral solution in case it cannot achieve the whole economy access to the single market.
During the manifesto launch, BIBA chief executive Steve White underlined that over 2,700 insurance intermediaries in the UK have passports enabling them to carry out activities in EU member states and that European revenues of £7.8bn are managed or written in London.
Image: BIBA’s manifesto urges UK government not to further increase IPT and also to retain single market access. Photo: courtesy of BIBA.