The doubling of Insurance Premium Tax (IPT) in only 18 months, the changes to the discount rate for calculating catastrophic injury damages, increasing inflation and decreasing value of Sterling, and the coming snap election all mean that the insurance industry is facing a perfect storm, according to BIBA CEO Steve White.
Speaking at the opening address of the 2017 BIBA conference in Manchester, White said that BIBA was carefully watching these issues, as well as the possible force of Brexit and possible protectionism from the new administration in Washington D.C.
“Cost pressures within our industry, economic factors affecting insurance buyers, uncertainty and new competitive threats to the UK insurance market are all possible issues that we have to deal with,” said White.
“If a few of these storms materialise and hit us at the same time, they could create significant challenges for us.”
However, he said that there was reason to be positive, as there was plenty of “better weather to look forward to”.
“Our industry remains in a healthy state and continues to make a significant contribution to the UK’s service trading surplus.
“There are opportunities arising from insuretech, from autonomous vehicles and from the desire to really increase trust in our sector and we will be right behind our members as these opportunities develop.”