Summer Budget 2015: “action to make sure that consumers get a better deal”

The Chancellor used this phrase in introducing the part of his budget speech that covers insurance. The budget materials point to close liaison between Treasury and the Ministry of Justice, in that they:

  • announce a fundamental review of the regulation of claims management companies, reporting to both Treasury & MoJ, and
  • reconfirm that the Insurance Fraud Task Force will report to both these departments by the end of the year.

The less welcome news for insurance customers is a 50+% increase in IPT (Insurance Premium Tax). In November, the rate will go up from 6% to 9.5% of premium charged.

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