Insurance firms will be dropping out of the market unless competitiveness is addressed by the government, according to the Association of British Insurers (ABI).
Almost (80 per cent) of the UK insurance executives surveyed by the ABI feel that if the government fails to improve competitiveness, there will be a fall in the number of insurance firms based in the UK. Additionally, nearly two-thirds of senior management have been tempted to move abroad because of the current UK personal tax system.
The findings come as the ABI publishes its proposals for the market, called ‘UK Competitiveness: the way forward for insurance’, which is its blueprint to maintain competitiveness and outlines the challenges and opportunities for the UK.
Stephen Haddrill, the director general at the ABI, said: “The recession cannot be allowed to mask the challenge, but also the opportunity, the UK faces over competitiveness. Getting it right today could reap rich rewards tomorrow.”