Biba 2010: Cullum predicts insurer exodus over tax

Towergate chairman Peter Cullum says more insurers will quit the UK in the face of rising taxes.

Cullum, speaking at the Changing World Debate, at the Biba conference in London today, said: “I think there will be a huge number of people going offshore, because there is a huge incentive for people to go offshore.”

Cullum said capital gains tax is likely to increase to up to 50%, while Oval chief executive Philip Hodson believed there would be a rise in corporation tax.

Lloyd’s chief executive Richard Ward said the uncompetitive tax regime was forcing insurers to redomicile and feared the new coalition Government would not take the steps to make the UK competitive again.

Asked about there predictions for the economy, there was a general consensus from the panel, which also included Aon’s Rob Brown, that the economy faced serious challenges.

Cullum said: “This is one of those moments in history that has a negative connotation on a scale that would keep you awake at night.

“We are going to go through years of unbelievable changes.”

On regulation, Hodson feared the new Government would ramp up regulation.

He said: “I think there will be more regulation because of the climate not because of the Lib-Dem coalition.”

He accused the FSA of lumping insurers together with banks, adding: “The regulator is using a hammer to crack a nut.”