Insurance bosses concerned at increasing tax burden
Insurance industry chief executives are concerned that the growth of their businesses will be affected to an increasing tax burden. PwC surveyed 80 insurance company CEOs across 37 countries and 64 per cent cited tax burdens as a growth-inhibitor compared to two years ago when the figure was 57 per cent. The heightened reputational and non-compliance risks associated with how companies manage their tax affairs means that boards are taking a much closer and more active interest in tax policies and how the tax landscape is set to evolve. Executives increasingly expect tax teams to keep them up-to-date with tax policy developments, strategic options and potential risks.
Colin Graham, Global Insurance Tax Leader at PwC, commented: “Tax has always been one of an insurer’s most significant expenses, and a key challenge for insurers now is to continue to find growth whilst responding in a clear and thoughtful way to a much wider base of stakeholders than before, including not only tax authorities and governments, but also regulators, investors, non-governmental organisations (NGOs), the media and the general public.”
While insurers generally recognise the need for change in their tax functions, most are still at the early stages of transition. PwC’s survey shows that few tax teams appear to have evaluated the likely future alternative scenarios, let alone made plans or put them into implementation
Insurer warns of surge in industrial hearing claims
Hearing loss caused by noisy workplaces are costing the insurance industry millions of dollars as claims intensify. Insurer
Allianz Commercial says that in the UK alone there have been 170,000 people suffering from deafness, tinnitus and other ear conditions as the result of exposure to noise at work. The company has issued guidance to companies to help combat the issue.
Allianz says that claims for industrial deafness have surged by 250 per cent in the last five years with the first quarter of 2015 hitting a new high. The insurance company advises risk assessments by businesses, especially those in manufacturing, to mitigate noise exposure for employees. Industrial deafness has been dubbed “the new whiplash” as personal injury lawyers have been actively pursuing clients with potential claims.
New Zealand insurers launch multi-year auto insurance
Motor insurance companies in New Zealand have begun offering customers the opportunity to lock-in their auto insurance for up to three years. The innovation from Co-Op Insurance NZ and Provident Insurance Corporation means that drivers have a fixed premium for the term and the level of deductibles also decreases each year. Steve Owens, CEO of Provident said: “It’s a win-win for everyone. The customer gets their premium rates and accident-free discount locked in until their next policy renewal date irrespective of whether they’ve made a claim or not. It also means when there is a finance provider involved, they know their client and their security are covered for a much longer term than a traditional 12 month renewable policy. That reduces lots of effort in terms of chasing up insurance details if there is a write-off situation with a financed vehicle.”
