We are the voice of insurance and long-term savings | Contact us

IMF proposals on new tax on insurers not merited

Responding to reports that the IMF is planning a new levy on all financial institutions, not just banks, Kerrie Kelly, the ABI's Director General, said:


"It is important that the financial system is made safe but it needs measures that are focused where the risks exist. Insurers were not a source of failure and their business model means they are not subject to the types of credit and liquidity risks that destroyed so many banks.  Any inclusion of insurers within the scope of levies designed to impact on banks is essentially inappropriate and not justified."


In addition to removing insurance from proposals for a bank bailout fund ABI calls on the IMF and G20 to consider:


·         The need to ring fence any bail out funds so that they cannot be used for general public expenditure;


·         How bail out funds would be apportioned across the EU and international borders;


·         Bail out funds must be built up over time and should not be levied in such a way that damages companies as they continue working to emerge from this financial recession.


Last updated 01/07/2016