The British Insurance Brokers’ Association (BIBA) has called on the government to reduce Insurance Premium Tax (IPT) from 12% to 10% in its submission ahead of the Autumn Budget.
BIBA announced that it is also seeking exemptions from IPT for insurance covering multi-occupancy residential buildings that require or are undergoing cladding remediation, as well as for cyber insurance products to encourage greater uptake among small and medium-sized enterprises (SMEs).
BIBA’s submission also urges the government to commit to long-term investment in flood defences, exceeding the levels set in 2020. Additionally, the association is calling for changes to the growth and skills levy, advocating for non-levy payers to be able to claim 100% of training costs.
This, according to BIBA, would help create more opportunities for workforce training and development.
In its proposal, BIBA is also seeking a services trade agreement with the European Union to address the shortage of affordable home and motor insurance in Northern Ireland.
BIBA chief executive Graeme Trudgill noted that the association’s recommendations are designed to support customers during difficult economic conditions while ensuring that the broking sector remains robust and able to advise businesses on managing risks.
“The government has the opportunity to make some specific interventions to help ease the financial burden on customers and help with the issues that we are seeing with capacity in the Northern Ireland market,” Trudgill said.
Trudgill added that offering incentives, particularly in areas like cyber risk, could help mitigate challenges such as the rising threat of cyberattacks. He said BIBA believes its proposals would align with the government’s goals for economic growth.
Read More: BIBA and MGAA forge closer ties
BIBA also emphasised the importance of proportionate regulation and shared its views on the government’s proposed Regulatory Innovation Office.
The association sees the office as a potential vehicle for fostering a more balanced regulatory environment that supports the broking industry while delivering positive economic and social outcomes.
What are your thoughts on this story? Please feel free to share your comments below.
