In anticipation of the UK Spring Budget tomorrow, Phil Smart, Head of Insurance and Investment Management, KPMG UK, says:
“I think everyone is hoping that tomorrow’s budget will be a quiet one for insurers but the industry has learnt not to be complacent and will be braced for unwelcome surprises. Over the last year, insurers have seen a host of new and unexpected costs as a result of policies such as upping the Insurance Premium Tax and drastically reducing the Ogden discount rate, resulting in higher compensation costs for insurers.
“Brexit and wider geopolitical uncertainties pose challenges which the sector is working through: our clients tell us further levies would be particularly unhelpful from a competition, cost and compliance perspective. In a post-Brexit world the role insurance plays in infrastructure development and in providing protection for economic growth will be essential, there needs to be point at which the Government stops squeezing.”
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Notes to editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.