In a letter ahead of November’s Autumn Statement, the British Insurance Brokers’ Association (BIBA) has called upon the Chancellor of the Exchequer to address the lack of progress on the regulation of claims management companies (CMCs) and reform of the personal injury market.
In the letter, the broker group referred to previous Budget commitments to reform the compensation system for personal injuries and the fact that in the 2016 March Financial Statement, Government supported and accepted the recommendations of the independent review by Carol Brady into the regulation of Claims Management Companies (CMCs).
“In the months that have now passed there has been no tangible progress with the recommendations and no implementing legislative vehicle; contributing to continued increases in motor insurance premiums.,” said BIBA in the letter. “BIBA has called for this to be addressed in the Autumn Statement.”
BIBA has also reminded Philip Hammond of a commitment made by his predecessor George Osborne to use funds raised through Insurance Premium Tax for further flood defence projects.
Steve White, BIBA’s chief executive said: “Since IPT was raised to 10% there has been a new Prime Minister and a new Cabinet. BIBA is seeking assurances that the extra revenue raised by this increase in tax will continue to be used for both capital spend flood prevention projects, as well as maintenance.
“We would welcome a clear commitment that there will be a continued £2.6bn Government strategic investment in flood defences alongside the £200m per year generated from the increase in IPT. This would lead to job generation and promote flood resilience which will, in turn, ensure the long-term ability of a soon to be available BIBA commercial insurance solution to provide flood cover for businesses.”
The letter also calls for the UK to stay in the EU’s single market.
“The UK is the leading general insurance market in Europe and to maintain this position, it is vital that HM Government ensures we can continue to trade freely in the European single market after we leave the EU,” said White.
“In addition it is crucial that our regulatory regimes remain comparable to those in Europe. We also ask that Government prioritises arranging new bi-lateral trade agreements.”