Government quietly introduce insurance increased costs
When governments declare budgets, usually in March or April they trumpet the important bits and somehow manage to slip through all kinds of tiny changes that affect people at a later date.
One of those ‘tiny changes’ introduced by the government as at 22 May 2017 was an increase in Insurance Premium Tax, which has now gone to 12% from 1 June 2017.
For example, if your public liability insurance premium is £1000 it will now be £1120.
Doesn’t seem like much but have you heard of the Ogden discount rate, I certainly haven’t but the Chancellor reduced that rate from 2.5% to 0.75% and when I investigated what this actually meant it is all about a subsidy to the insurance underwriters. Without going into too much detail the net increase in premium rates from June 2017 will now be effectively 4.2% plus the extra tax.
Tracey McCreath at La Playa has given us as much notice as possible on this and is already searching for an alternative underwriter and will negotiate the best possible deal she can on behalf of AFO members.
Who knows, after 8 June it could get better or indeed worse. Be warned! Watch this space!
Steve Heap, General Secretary, AFO
AFO: 26th May 2017 11:03:00
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