Triple Westminster wins for insurance as FSA overhaul begins

The coalition government delivered three big wins to the insurance industry this week.

As parliament broke up for its summer recess on Tuesday, ministers made a string of announcements addressing key industry concerns. These included:

• suggesting the break-up of the Financial Services Compensation Schemeas part of a wider review of financial services regulation, potentially relieving brokers from the threat of having to cross-subsidise failed banks – a key demand of the Insurance Times Fair Fees campaign;

• moves to exempt British-based companies from UK levels of corporation tax on profits earned by their foreign branches; and

• a pledge to take forward Jackson review recommendations.

The ABI welcomed the government’s moves on the Jackson Review and the taxation of foreign branches.