Insurers have warned that the “outrageous” 2% increase could lead to increased underinsurance as the change is described as an “unwarranted attack”.
The announcement on Wednesday that Insurance Premium Tax (IPT) is to rise 2% to 12% in June 2017 was met with anger, yet no surprise by the insurance sector.
Amanda Blanc, group CEO, Axa UK, said: “This hike – the third in the space of 18 months – represents an unwarranted attack on millions of people simply looking to protect themselves, their families and their key assets.”
In the Autumn Statement, Chancellor of the Exchequer, Richard Hammond, also outlined whiplash reforms which he said would save motorists up to £40 a year.
Many brokers feel this IPT rise is taking a backward step, fearing IPT could potentially hit 20% in the future.
For the full article, please visit: (Insurance Age, http://www.insuranceage.co.uk/insurance-age/news/2478275/sector-slams-latest-ipt-rise)