Business

BIBA welcomes gov IPT rate promises

Steve White, CEO for the organisation stated that this measure would provide ‘some comfort’ to insurance customers already facing premium increases for a variety of external reasons

The British Insurance Brokers’ Association (BIBA) has welcomed the announcement made by chancellor Rishi Sunak yesterday (27 October) to leave the rate of Insurance Premium Tax (IPT) untouched.

Steve White, CEO for the organisation stated that this measure would provide “some comfort” to insurance customers already facing premium increases for a variety of external reasons.

However, he explained that tax remains a “significant proportion” of the cost of being responsible and hopes future spending reviews will recognise the road safety benefits of greater use of “telematics-based policies” by removing premium tax on these to increase their uptake.

He said: “Given the current risk of flooding in the UK which has prompted the creation of a joint initiative by BIBA, the ABI and Flood Re to form a Flood Insurance Directory, we were delighted to see that government is committed to an additional £22m each year for the maintenance of flood defences.

“We hope to work closely with the government to help introduce more general and property specific resilience measures. We look forward to representing BIBA members’ views including our call for the government to introduce an international competitiveness objective on the FCA, the PRA and the CMA.”

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