Flood levy: A solution or a stealth tax?

What is there to make of the government’s tentative plans for a flood levy?

On the face of it, it’s a sensible step for insurers. In return for this levy to pay for flood defences, insurers will continue to cover properties in flood-prone areas. Something has to be done quickly before the Statement of Principles expires next year and this seems a straight forward solution.

Brokerbility chairman Ashwin Mistry calls the levy a ‘stealth tax’. It’s an emotive phrase that has grabbed the headlines this morning. But the harsh reality is that somebody has to pay for improving the country’s dilapidated flood defences, whether that be insurers via higher premiums, the government’s tax revenues or this ‘stealth tax’ levy. There are no easy answers.

Blanc can steer change at AXA

Meanwhile, AXA’s commercial lines chief executive Amanda Blanc takes over personal lines broker. As one personal lines broker head tells Insurance Times privately, all the major composites are slow and unresponsive.

To truly succeed, Blanc will need to empower quick local decision-making while ensuring that software systems are up to date. Aviva has used the likes of SSP and Open GI to pave the way for real-time pricing and, along with Personal Best, it seems to be reaping the rewards. It looks like it’s going to be quite a journey, but if anyone has the energy to expand AXA’s footprint with regional brokers, it’s Blanc.