Bluefin boss Reid says 1% increase will be a relief for insurers

Bluefin chief executive Stuart Reid has reacted to changes to Insurance Premium Tax in today’s emergency Budget.

He said: "While we would have preferred insurance premium tax (IPT) to remain fixed, the standard rate rise from 5% to 6% will be welcomed by many, especially as there had been much speculation that it could have risen as high as the new VAT rate of 20%.

“Clients will be pleased for obvious reasons. Insurers will breathe a big sigh of relief because a more significant increase would have put pay to any ability to influence premium rates upwards, something not yet happening in many areas but which will be needed sooner rather than later.”