Last November, Insurance Premium Tax rose from 6% to 9.5%. I still find myself reminding clients as to be fair not the top of everyone’s mind!
However, this of course adds 3.5% to the premiums we are all paying, so it’s good to note this increase is outside of both Insurer’s and Broker’s control.
So something to bear in mind in your renewal discussions, is this increase reflected in the premium?
You can quickly calculate the increase in cost compared to last year, take this 3.5% increase into account, then you’ll understand the premium increase applied to the renewal rate.