Insurance Premium Tax rise to reduce benefits of whiplash reform savings for motor insurance

23 November 2016

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Tony Sault, UK General Insurance Market Lead at EY, comments on the Chancellor’s announcement on whiplash claims:

“Reforms to whiplash claims will be welcome when they come in, but motorists are unlikely to see any cost savings until 2018. In fact, premiums are expected to rise in 2017 for 3rd year running, adding a further £13 to the annual bill, on top of a £33 rise in 2015. However, any savings that motorists could expect in 2018 will be reduced by the 2% rise in Insurance Premium Tax (IPT), announced to come in next June.”