A new tax levied on corporate medical insurance premiums has had a negligible effect on business levels, according to health insurer BCWA.

When Chancellor Gordon Brown introduced the 12% national insurance levy on company health insurance premiums last April, BCWA said it was concerned the added burden would damage its growth prospects.

However, in its annual report and accounts for 2000, BCWA managing director Martin Wren said: "I am pleased to report that, so far at least, this increase in taxation has had no discernible impact on the demand for our products."

BCWA recently announced its best overall results in its 65-year history with a pre-tax profit of £7m.