Insurance sector responds to general election result

The insurance and financial services sector has responded to last week’s landslide general election win for Labour and the start of a new government led by Sir Keir Starmer.

The ABI said it is looking forward to forming a strong relationship with the government. Hannah Gurga, ABI Director General, said: “We look forward to working closely with the government to deliver on our mutual priorities. Our industry shares many areas of common interest with the new government, including an ambition to drive growth and competitiveness, boost household financial resilience against risks and tackle climate change. By working together, we can find solutions to some of the country’s biggest challenges.”

Meanwhile, the RAC urged the new government to take rapid action to reduce the motor insurance burden. With figures from the ABI showing average premiums rose by a third in the 12 months to March 2024, rising insurance costs are the second biggest concern of drivers this year in the RAC Report on Motoring. These costs are felt even more acutely by the youngest drivers who say insurance costs are their biggest overall concern, with four-in-10 (44%) listing it as their top motoring worry.

To address this, the RAC says it would like to see the government deliver on the commitment in the Labour manifesto to tackle ‘out of control’ prices by calling in the FCA to investigate premiums set by motor insurers. It also urges a reduction in IPT from its current 12% which it says is compounding the recent rises in motor insurance, the burden of which is felt far more by younger and more inexperienced drivers who pay the highest premiums.

BIBA has previously welcomed Labour’s proposed introduction of a Regulatory Innovation Office and has called on the government to continue the previous administration’s work to enhance regulatory scrutiny.

Graeme Trudgill, BIBA CEO, said: “I welcome the opportunity for BIBA to continue representing members by working and engaging with the new government. We are well placed to forge productive relationships since bolstering our public affairs team to better invest in member representation.

“Our 2024 Manifesto is all about managing risk, increasing resilience and growth, placing the role of insurance brokers at the heart of this. We will raise the value of insurance brokers and highlight member issues and our priorities. Above all else, we look forward to showcasing the skills and expertise of the sector in finding solutions to some of the biggest risks we are facing and will face in years to come.”

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