The ABI and Biba are continuing to lobby the government for a solution to the liability problem. And now trade bodies such as the National Federation of Builders are adding their voices to the debate. ...
The ABI and Biba are continuing to lobby the government for a solution to the liability problem. And now trade bodies such as the National Federation of Builders are adding their voices to the debate.
But Whitehall has stuck its fingers in its ears to drown out these unwanted voices. No matter how loud the shouts get, the government doesn't want to hear.
"We are monitoring the situation," is all the Treasury mandarins will say. One wonders when, or if, they will ever open their eyes. If they did, they would see a bleak picture. A grim tableau of businesses collapsing or trading illegally through lack of available or affordable insurance.
How can the government not react when high-risk contractors are unable to obtain any liability cover through lack of capacity and when other businesses are facing premium hikes of over 1,000%?
How can the government sit back and do nothing as the economic heart of the country is slowly being squeezed dry?
The government says there is "no market failure". I am sure that those who have lost their businesses would beg to differ. For administration that has positioned itself as a friend of industry, to do nothing is a despicable betrayal of the business community who helped it to power.
And this failure is not doing the insurance industry's reputation any favours either. With each newspaper report describing the huge increases in premiums and the companies being forced out of business, the industry's image takes a blow. How long will it be before this becomes a knock-out?
Positive, creative solutions are needed, and fast. The time has come for the government to face the beast.
Michael Faulkner
Markets reporter