ABI comments on Queen's Speech

The Association of British Insurers has released its comments on today's Queen's Speech.

The association highlighted two particular elements of the speech which it deemed as being of particular interest to its members: the Pensions Bill and the Climate Change Bill.

Chris Kenny, the ABI's director of life and pensions, said: “The Pensions Bill represents an important step on the long road to reforming Britain's pensions system. We support the establishment of a Delivery Authority to oversee the introduction of Personal Accounts. Much more work is needed to get the fine detail right and, crucially, the Government must ensure that the existing pensions market, which serves millions of customers well, is able to prosper.

“We also support moves to link the Basic State Pension with earnings, gradually increase the state retirement age and make the whole system fairer for women and carers. But if the Government is to achieve the aim of getting more people saving more for their retirement, the Bill must contain firm measures to reduce means-testing in the pensions system.”

Jane Milne, the ABI's head of property insurance, said: “Climate change is one of the biggest challenges that Britain, and the world, faces. We support the Government's plans to set targets and establish the Carbon Committee to give advice on reducing carbon emissions, but firm action is needed too.

“Climate change means, amongst other things, that the risk of flooding will increase. Managing the risk will enable flood insurance to remain widely available. Urgent action is needed here – we believe that Government spending on flood defences needs to increase by 10% a year to £750 million by 2011 to deal with that risk.”