Welcome to the first newsletter of 2017, and what an interesting start to the year it has been.
Insurance Premium Tax
Late last year the Chancellor announced, in the autumn statement, that yet again the IPT rate was to rise.
This means that from the 1st June 2017 the rate will increase to 12% which means, over the past two years, the IPT rate has doubled
Whilst this is bad news for the policyholder at least HMRC did give the insurance industry 6 months’ notice of the rise. BUT, and there is always a but, there have been numerous discussions with HMRC over their interpretation of the implementation of this new rise which differs from the interpretation taken on previous rises.
We have been working with other trade bodies [ABI, IUA, BIBA, LIIBA] and Lloyd’s and it was hoped that by the end of February the position would have become clearer. However, we are close and I would encourage all members to keep an eye on the press and our website for further information around the HMRC interpretation of the implementation of the current increase.
We are delighted to confirm that the MGAA and LMA have agreed to exchange Associate membership.
This will allow MGAA members closer access to the LMA as well as Lloyd’s Delegated Authority directorate.
Members are able to join the new Lloyd’s Market forum which will meet every 4 months. The next meeting will take place on 17 May 2017.
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USEFUL LINKS AND NEWSLETTERS
Financial Ombudsman Newsletter
Information Commissioner Newsletter
MGAA Compliance Newsletter
MGAA Regulatory Calendar
PKF Littlejohn VAT Newsletter
IUA Risk Today Newsletter
Lloyd's Market Bulletins
Pool Re is pleased to present its new Terrorism Threat and Mitigation Report. The report focuses on key terrorism events and trends between August and December 2016, and provides a comprehensive presentation and analysis of the current and future terrorism threat and its implications for the resilience of UK businesses and the economy.
Floor Re are pleased to confirm that there is now a new release of data from the Valuation Office Agency and the Scottish and Northern Ireland equivalents to the Property Data Hub.
This data was made available in the On-boarding Test Environment (OTE) for offline users to download in February and will be promoted to the live environment in late March.
Data should be downloaded as soon as possible, although both online and offline users should not start using the data until after it becomes available in the live environment. This is because Flood Re will only start using this new data on the date it moves to the live environment.
Members can contact the Flood Re service desk on firstname.lastname@example.org or on +44 (0)330 024 3131 if you have any questions.
Guidance on increasing transparency and engagement at renewal
In August 2016 the FCA finalised their new pro-competition initiative, designed to encourage increased transparency about pricing at renewal and to encourage greater engagement and better-informed decisions on the part of customers.
The new rules and guidance, set out in Policy Statement PS16/21, apply from 1 April 2017 to the renewal of any consumer insurance product which is not a group policy and has a duration of 10 months or more.
MGAs distributing consumer products through brokers need to be aware of the new rules, whilst understanding that responsibility for their implementation rests with the broker
We have issued guidance which can be accessed here.
PROFESSIONAL INDEMNITY INSURANCE EXAMINATION
The International Underwriting Association has developed a new qualification for professional indemnity practitioners in the UK market. The first candidates have already taken the examination and new courses are now being made available.
The IUA’s Professional Indemnity Forum (PIF) established its own test in response to requests from the association’s member companies. It is designed to provide entry-level candidates with a grounding in the subject. Specifically designed course study text and training modules explain the main professional indemnity classes of business, how to understand and draft policy provisions and key legal concepts affecting the market.
The PIF Test comes with self-study texts which are supported by training days organised by IMC Events Ltd. A course syllabus is available from Chris Jones, Director of Market Services at the IUA (email email@example.com).
MGAA members ARAG have issued a video to help MGAs involved in a legal expenses claim, which can be very stressful.
Rob McArthur discusses what happens if a policyholder needs legal representation following a claim. He also talks us through the importance of independent legal representation from solicitors who are experts in the area concerned, in ensuring the best possible outcome for our customers.
If you would like more information about ARAGs Claims department or you need a claims form click on this link
View here for some guidance and tips about making a claim on your legal expenses insurance policy.
LORD CHANCELLOR'S STATEMENT ON THE DISCOUNT RATE
View the BLM Newsflash on the Chancellor's Statement here.
Claims Management Awards
Nominations are now open for the award categories to everyone involved in claims management. The aim is to celebrate the successes of MGAs who have shown outstanding commitment to the policyholder. For further details click here