General Insurance Article - PwC comments on the Autumn Statement

 "Although the insurance industry will not welcome today's announcement, it is not wholly unexpected and the industry has been vocal in its lobbying against further rises for some time. Nonetheless, insurers have been predicting a trend of IPT ultimately aligning with the UK’s 20% VAT rate.

 "Between October 2015 and June 2017, we will have seen a doubling in IPT rates from 6% to 12% and we expect further rises in years to come."

 "If these are passed on to the man on the street, we expect around £25 in extra tax will be added to the cost of the average motor insurance bill"

 Comparing savings for consumers on motor insurance, Mohammad Khan, UK general insurance leader at PwC, commented: "Consumers can expect to save around £40 on their car insurance premiums following government plans to cut compensation for whiplash injuries. However, we expect the same premiums to rise by £25 due to IPT rises put in place since October 2015. We expect further rises for IPT in coming years, which would further eat into any savings brought about through whiplash reforms."