IUA launches new Insurance Premium Tax

Associations, Insurance and Reinsurance, IUA, Marine Insurance, Taxation — By on January 12, 2015 at 9:15 AM
Nick Lowe

Nick Lowe

IUA LAUNCHES NEW INSURANCE PREMIUM TAX

INFORMATION SERVICE AS RATES CONTINUE TO RAISE 

A new insurance premium tax information service is to be launched by the International Underwriting Association as governments in Europe continue to use such levies to boost public finances.

The IUA’s annual ‘Tax Mat’ publication shows further tax rises across the continent during 2014, following a number of increases in previous years. A new online information service providing monthly updates is now being prepared by the association.

Last year the Czech Republic introduced its first form of premium tax with a 3% contribution to a Loss Prevention Fund while Malta upped stamp duty from 10% to 11%. Meanwhile Slovenia has raised its insurance premium tax rate from 6.5% to 8.5% with effect from January 2015.

These moves follow earlier changes, noted by the IUA’s research, in France, Denmark, Finland, Hungary, the Netherlands and Italy.

“Changes to insurance premium tax regimes are not uncommon and so the IUA is keen to provide more frequent updates for its member companies, ” commented Nick Lowe, the IUA’s Director of Government Affairs.

“There have been several moves over the past 12 months to increase the revenue raised from such charges and these are not isolated instances. Across Europe the trend for ever more new additional levies on different classes of insurance cover has been continuing for a number of years.

“Once such charges have been established it is very unusual for them to be repealed. The end result is a rising cost of insurance for consumers.”

The IUA’s new online service will summarise insurance premium taxes applicable in each of the nations in the European Economic Area. It includes the basis of the tax, person liable, payment frequency and tax rate, together with any additional relevant information.

About the IUA

The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.

The IUA’s London Company Market Statistics Report shows that premium income for the company market in 2013 was £17.445bn with a further £6.831bn controlled by London but written elsewhere. These results are based on a comprehensive survey of 57 companies and combined give an overall intellectual and economic premium total of £24.276bn for the London company market.

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