The British Insurance Brokers' Association (Biba) has called on the Chancellor not to raise Insurance Premium Tax (IPT) above its current level of 6% in the upcoming Budget on 21 March.
The trade body argued against any rise in order to avoid a further taxation of protection through additional insurance costs for customers at a time when income and business margins are tight.
The call came in Biba's submission to the Chancellor, George Osborne, which focused on the need to recognise the importance of risk management and insurance protection to assist growth and business resilience.
Eric Galbraith, Biba's chief executive, highlighted the value of general insurance brokers in helping both individuals and businesses protect themselves through good risk management and insurance protection.
He stated that this value was being eroded through inappropriate, disproportionate and costly regulation which impacted both the general insurance broker and their customer.
On the change of regulation to the Financial Conduct Authority (FCA), Mr Galbraith added that this was the opportunity to create the right regulation and to recognise the difference between banks, insurers, and general insurance brokers.
He also called for the Financial Services Authority (FSA) to urgently progress its review into Financial Services Compensation Scheme (FSCS) levies.
Fundamentally flawed
Mr Galbraith argued that the current funding system for the FSCS was fundamentally flawed and changes should be made to ensure that general insurance brokers were not paying for the mistakes of others with some brokers having seen a 50-fold increase in levies.
In addition he welcomed proposed action by the government on signposting which he claimed would cost government very little but would be of huge benefit to individuals who might otherwise struggle to access suitable insurance protection.
Mr Galbraith said: "Demand for the services offered by Biba's members is greater than ever.
"Biba's members play an important role in helping to ensure that individuals get access to the insurance suitable to their needs."
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