What are the stories hitting the headlines this week?

Issue

The British Property Federation is calling for urgent renewal of the flood insurance provision agreement between the government and insurers. The government has been procrastinating over renewal of its Statement of Principles, which currently guarantees provision of flood cover and expires in June 2013.

Acquisition

Lloyd’s insurer Barbican has bought Manchester-based managing general agent Professional Indemnity Protect. Barbican will keep the PI Protect brand and the firm’s underwriting team will remain in Manchester.

Relief

A reduction of the corporate tax rate to 20% by the chancellor in Wednesday’s Budget would be well received by the insurance industry, says PricewaterhouseCoopers, but it warned that those companies carrying forward tax losses might have to reduce the value of their tax assets on the balance sheet.

Wait

Brightside Group has said that two years is too long to wait for access to DVLA records and that further delay will cause motor premiums to rise. The company’s research showed a rise in dishonest motor applications of 40% over the last two years.