ABI: insurers need more reasons to stay in UK
The Association of British Insurers (ABI) has warned that the UK needs to create a more friendly and competitive environment for the insurance sector to prevent more insurers leaving the country.
Last year the insurance sector paid the Exchequer £8.2bn, the fourth highest total for any sector.
In addition, the ABI has revealed that whilst the national average wage is £25,000, the isurance sector average is £42,000, meaning that insurers pay the Exchequer some £18,667 in employment taxes per employee, on average.
Nationwide the sector employs 313,000 people, of which 175,000 work for ABI members.
The ABI has warned that numerous factors, such as the 50% higher tax rate, the reduction of pension tax relief and the emphasis on the more highly paid being targeted for taxes to help rein in the deficit are all putting off senior people in the industry.
Last year the ABI conducted research showing that four out of five of insurance executives forecast a decline in insurance firms based in the UK without extra competitiveness, a prediction backed by the migration in July 2009 of Beazley, which moved from the UK to Ireland, citing its desire for a lower corporate tax rate.
Category: ABI News, Insurance News
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