Leader: Listen up, Lib-Cons

While the Labour leadership election result may have surprised many in the financial services sector, it need concern few. As our straw poll of industry figures shows, the political demands of the UK insurance industry are very much focused on the here and now. The current government must listen today.

Here are five changes that the coalition could make to effect real change for insurance, and encourage wealth-generating organisations to stay put and keep pumping tax pounds into the Exchequer:

1. Invest in flood defences – quickly, substantially and transparently. Public sector cuts are all very well, but when the rains come again, the government cannot expect insurers to meekly pick up the tab for decades of under-investment.

2. Maintain the UK’s pre-eminence in insurance by keeping corporation tax down and avoid the temptation to introduce hidden taxes through the back door.

3. Must we say it again? Insurers are not banks. When the FSA is dismantled and a new regulator introduced, ensure the system differentiates between the financial services – and has insurance experts on board.

4. Lord Jackson’s reforms of the personal injury system have the broad support of the industry. This government, free of union influence, should implement them in full.

5. Finally, end the outrageous unfairness of the Financial Services Compensation Scheme levy on brokers. We will be fighting for this harder than ever over the coming months. Watch this space and register your support at insurancetimes.co.uk/backfairfees. IT

ellen.bennett@insurancetimes.co.uk.