With effect from the 1st June 2017 the Government has decided to increase Insurance Premium Tax by another 2% to 12% payable on all Renewals and New Business from this date.
This alongside their decision to postpone/abandon reforms to Whiplash Payments which could have addressed many of the issues Insurers are facing on paying compensation for whiplash injuries and saving the industry millions on spurious claims.
We have also seen the Government making changes to the Ogden Rate (see our previous news articles) which again will affect Insurers bottom line my millions.
These changes will have an affect on all of us with the expected immediate impact on Car Premiums over the coming months (as per the ERS article above) which will see premiums increase by an estimated 29% within a year.
We are also seeing signs that the Motor Fleet market is starting to react and push rates up slightly and the general feeling in the Insurance Market is that the legislative changes in recent months will undoubtably put pressure on Insurers to increase premiums.
The Insurance Press are reporting this almost daily with Insurers disclosing the effects on their bottom line and reduced profits.
What can you do to combat premium increases?
It is essential that you engage with a proactive Insurance Broker who has invested in providing a ‘vast choice of markets’ (many Brokers restrict their markets to reduce costs) and are proactive in Risk Management to ensure you remain an attractive risk to Insurers.
Paterson Insurance are part of the Gauntlet Enterprise Network with access to over 300 Insurers with an in-house Risk Management Team.
We are also members of the Willis Towers Network, the third largest Broker in the world with exceptional expertise and buying power.
If you need to discuss our market advantage and how we are preparing our clients for a tougher market conditions, please contact us at either our Wakefield or Leeds Offices.
Wakefield Office: 0113 8314024