Government should avoid using insurance as additional revenue stream for Treasury
Responding to the Chancellor Philip Hammond's Autumn Statement today, Keith Richards, Managing Director (Engagement) at the Chartered Insurance Institute, warned against 'effectively doubling insurance premium tax':
It is very disappointing that the Government has for the third time in twelve months targeted insurance as a source of additional revenue for the Treasury without considering the unintended consequences this will have on the public’s access to insurance. At a time when we are observing under-provision of insurance in many parts of society, effectively doubling insurance premium tax between Nov 2015 and June 2017 will have the effect of disproportionately increasing the cost of protection and further dissuading many people from managing the risks they face.
The Government should remind themselves of the words of Sir Winston Churchill over hundred years ago which are as relevant to our society today: “If I had my way, I would write the word ‘insure’ upon the door of every cottage […] because I am convinced for sacrifices so small, families and estates can be protected against catastrophes which would otherwise smash them forever.”
