In response to the Health Select Committee’s publication of the social care report, Nick Kirwan, Assistant Director, Health and Protection at the ABI commented:
We all need to get to grips with the challenge of how we will pay for the care needs of an ageing population. The Select Committee’s report is an important contribution to this debate as it looks at how the future of care funding could work in practice.
We need to make sure we give people clear information about their options so that they can plan and prepare. We want to make sure people can approach older age with the security of knowing they will get the care they need. The insurance industry is ready to work with the Government to develop a long term solution, and we would urge the Government not to let this crucial issue slip onto the too difficult pile.
ABI responds to Office of Fair Trading study of extended warranties commenting extended warranties can be useful for customers after manufacturers’ warranties end if they are clearly informed on the benefits and limitations of such policies. ABI extended warranty consumer guide.
Six months on from the summer riots, the Association of British Insurers (ABI) comments on the progress insurers have made settling claims. More>
Future of UK insurance accounting
The UK Accounting Standards Board (ASB) is seeking views on insurance accounting. This arises from the ASB’s new proposals for the future of financial reporting standards in UK GAAP, which have significant implications for the ABI’s SORP and the ASB’s FRS 27, Life Assurance, and may affect many UK insurers’ accounts – including those based on IFRS.
Statement.
ABI responds to FSA Fees Consultation Paper
Otto Thoresen, Director General, ABI said: “This massive increase in regulatory fees comes in a year when insurers already face increased costs associated with implementing the Retail Distribution Review, Solvency II, changes to gender risk pricing and auto-enrolment. We knew that there would be a cost involved in moving to twin peaks regulation but, in this difficult financial environment, all organisations need to be focussed on controlling their costs. While insurers will do their best to absorb these costs, some will inevitably be passed on to the small companies and private individuals who are customers of the insurance industry at a time when they can least afford it.”
Cold weather warning
As the cold snap grips much of the UK, ABI reminds homeowners to takes steps to
reduce the misery of frozen and burst pipes.
Responding to Environment Secretary Caroline Spelman’s comments about insurers looking for a subsidy ABI Director General Otto Thoresen said:
“We are not arguing for a subsidy to benefit insurers. We want a long term solution, negotiated constructively with the Government, that will help the insurance industry continue to protect 200,000 at risk households. As is the case throughout the world, the government has to be at the heart of any solution – as an insurer of last resort, offering support to those most at risk, or through a number of other options. We are increasingly concerned the Government is putting far too much store on the potential benefits of a fund for low income households which would benefit only a fraction of the 200,000 high risk households at risk of losing their cover.”
The ABI has analysed Environment Agency data to reveal the areas that could struggle to access affordable flood insurance if the Government fails to agree a sustainable way forward with the insurance industry. Statement.
The ‘new normal’ set to redefine the UK insurance industry
ABI’s Director General Otto Thoresen sets out how the ‘new normal’ emerging from the 2008 financial crisis is set to redefine the role of the insurance industry.
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