You’ve probably given some thought to what you’d like to receive this holiday season; for insurers, they have their own wishlist – not for Christmas but for the Autumn Budget happening less than a week from now.
With
pressure piling on Chancellor Philip Hammond because of the much-talked-about Insurance Premium Tax (IPT) – which currently stands at 12% – here’s another appeal from the industry:
“In two years the Government has increased Insurance Premium Tax (IPT) three times,” noted The Health Insurance Group managing director Brett Hill. “A further increase in next week’s Budget could cause people to give up on private medical insurance and fall back to the NHS which is already under-resourced and struggling to cope.”
Echoing the views of the Association of British Insurers and the TaxPayers’ Alliance, Hill said sustained rises only serve to punish those who are doing the right thing in protecting their homes, health, and belongings. He suggested that while there is a free alternative for customers when it comes to medical insurance, the implications of increased demand amid limited resources aren’t rosy.
“It is also not so easy for medical insurance policyholders to change insurer in return for a reduced premium (as opposed to shopping around for a cheaper motor quote, for example),” he explained. “Many will have medical conditions for which they have recently or are currently claiming, and so will be unable to change insurer without losing cover for the medical conditions that matter to them the most.”
As for going back to the NHS, Hill cited evidence of rising waiting times for procedures and stressed: “It is counterproductive for the government to increase the demands on the NHS still further, yet it risks doing exactly that by pushing through tax increases that could force even more people to opt out of private medical insurance.”
Also expected to be tackled on November 22 are tax issues for late-life North Sea oil and gas assets, and
AIG Europe has expressed its stand.
“North Sea decommissioning is a major industrial challenge for the UK and one that will last for decades,” said Gordon Browne, head of energy and construction at AIG Europe. “There are two major challenges.”
Browne continued: “The first is that we need to keep North Sea oil and gas fields productive for longer and that is being hampered by a multitude of issues, one of which surrounds decommissioning tax relief. New operators with the skills and commitment to keep our energy resources flowing are being discouraged from entering the market and the industry needs to find solutions to resolve this.”
The second challenge is that decommissioning, when necessary, has to be done in a way that ensures cost certainty while ensuring present and future liabilities are well defined, managed, and protected, according to the energy and construction head.
“There are a number of financial solutions that can help encourage a commercial environment that continues to attract investment – the insurance industry encourages the relevant stakeholders to explore them all," added Browne.
Now it remains to be seen whether these wishes will be granted.
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