ABI Budget response (pension tax reform, insurance premium tax and more)

On pension tax reform:

“We strongly welcome a full review of how to strengthen the tax incentives to help people save more for their retirement.  Pension providers share the Chancellor’s concern that Britain isn’t currently saving enough and have been calling for this review for some time. We will be keen to actively contribute to this consultation, including highlighting the risks of a workplace ISA replacing pensions.”

On the increase in Insurance Premium Tax:

“Insurance Premium Tax is a tax on people and businesses at the point at which they buy a general insurance product. So it’s very disappointing to see a more than 50% tax increase being imposed on consumers, especially when the insurance industry and Government has worked so hard in recent years to bring down the cost of essential insurance.”

On regulation of Claims Management Companies:

“Poorly regulated Claims Management Companies have been hiking up the cost of insurance for far too long. The Government is right to tackle this aggressively and ensure the system rewards customers who behave truthfully.”

On Corporation Tax:

“Further cuts to corporation tax are good news. They will continue to make the UK a highly competitive destination for insurers and savings providers and enhance London's position as the insurance capital of the world.”

On delaying the secondary annuity market timetable to 2017:

“The new timetable announced today is a very welcome move and follows strong representations from the industry that the previous timetable was too quick. Providers want the reforms to the secondary annuity market to work for customers and it is right more time is allowed to get the right structures and regulation in place before going ahead.”

On the FCA review on shopping around for insurance:

“We welcome this review which is good news for consumers especially if the ABI proposal for disclosure of last year’s premium is adopted.”

Notes for Editors

Enquiries to:

Malcolm Tarling           020 7216 7410    Mobile: 07776 147 667
Caroline Jones                        020 7216 7327    Mobile: 07725 245293
Sarah Cordey              020 7216 7375    Mobile: 07860 189071