GE 2024: More Insurance Industry Comment and Reaction -

insurance industry parliament london govt policies

Time to round up some more comment from the insurance, legal and motor sectors after the Labour landslide;

PURBECK

Todd Davison, MD of Purbeck Insurance Services says:

“We want to see Labour prioritising small business growth and funding. Access to finance from the larger banks for SMEs can be difficult and precious time can be wasted in pursuit of these facilities. Decisions by the big banks need to be expedited for SMEs so that they have the opportunity to explore other avenues if necessary.

“Reforms to the British Business Bank could make access to capital easier, particularly if the BBB increases links with alternative finance providers. At Purbeck, we see most applications for personal guarantee insurance coming from SMEs that have secured loans from alternative lenders.

“Also, knowing that cashflow can sometimes fluctuate, prior to taking finance, SMEs need to check what forbearance/assistance a lender would be able to provide in order to help manage cashflow and repayment obligations. Any policies on interest only repayments, repayment holidays and the fees/charges in these circumstances, should be provided up front by lenders in the application process.

“Fundamentally, closer liaison is needed between the new Government and the lending community to help SMEs overcome the barriers to finance.

“At the same time, Labour needs to recognise that navigating the myriad of SME finance options can be daunting. Improved awareness and education is needed on how different loan facilities work and what can be done to reduce the risk of personal guarantees such as sharing the guarantee or using personal guarantee insurance.

“As we await the outcome of the FCA’s review into small business lending practices, small business owners can alleviate concerns surrounding personal guarantee backed loans and instead view them as avenues for growth and opportunity.”

PHOENIX GROUP

Andy Briggs, Phoenix Group CEO, said: “Our fundamental aim is to get the best possible outcomes for our 12 million customers and it is hoped that a period of political stability will help deliver this. Phoenix Group has been calling for a review of pension saving adequacy and we believe this should cover both the private and state pension system to ensure it is fit for purpose. It is imperative that a plan for increasing auto-enrolment minimum contributions should be part of this. Inaction risks people being lulled into a false sense of security that saving at the statutory minimum will be enough.

“It is also vital we give UK pension savers greater access to a wider pool of investment opportunities and this must go alongside better support and financial guidance for people taking one of the most important financial decisions of their lives. We will continue our programme of engagement with the Labour Party to ensure pension reform is one of their priorities. It is essential we address the pensions savings gap now to ensure the best outcomes for our customers and the wider UK population.”

RAC

The RAC is calling for the new Labour Government to urgently tackle the most pressing concerns of the UK’s 40m motorists in its new transport policy.

The poor state of local roads, rising insurance premiums and stubbornly high fuel prices are the top three concerns for drivers in the forthcoming RAC Report on Motoring 2024.

As a result, the RAC is urging the Government to address these alongside four other key issues:

Improve local roads
Reduce the motor insurance tax burden
Make fuel prices fairer
Cut road casualties
Support the transition to EVs
Ensure civil motoring offences are enforced fairly
Make paying for parking easy for all

DECTA

Scott Dawson, Head of Sales and Strategic Partnerships at DECTA:

“It was a divisive election but what matters now is that the new government prioritise common sense policies, including those in favour of the fintech community and its significant potential to better serve UK businesses. This especially goes for small to medium sized enterprises (SMEs), which collectively supports 27 million jobs. That is 61% of UK employment and accounts for a staggering £4.5 trillion in annual turnover.”

“Political clarity will be key to achieving this. Labour have been selling themselves as ‘not Tories’ and the Tories have been selling themselves as ‘not Labour’, and so on and so on. These parties have been defining themselves on what they’re not – it’s going to be interesting to see what they actually are and what solutions they will bring to strengthen the economy.”

“Despite 14 years of discussions about fostering innovation, regional development, and tech investment, London’s status as a supposed global fintech hub ever translated into meaningful government action – hopefully we’ll see a change to this now. Primarily, the government should look to actively promote private sector investment as and when it materialises.”

“It would also be positive to see this government learn from some of the most impactful changes that were implemented prior to the UK leaving the EU. The Payment Services Directive (PSD) regulations, for instance, spurred innovation by introducing Open Banking and 3DS services. Embracing, not fearing, regulation could be a game-changer. Less aversion to strong government support would be positive could unlock significant profit potential and fuel further innovation for UK businesses – helping them to prosper through better access to finance and financial services.”

ISIO

Iain McLellan, Director at Isio, comments:

“With Labour securing a sizeable majority their promised pensions review has the potential to be more radical and grasp some of the thornier pensions issues. The government may feel it has clear license to pursue the most ambitious form of its vision for UK pension schemes and their members. That could include sweeping changes to improve member outcomes, ensure schemes take advantage of consolidation and scale, and increase productive investment in UK markets, though it’s worth noting that the consolidation and productive investment themes are ones that were also being pursued by the previous government.

“In the meantime it will be interesting to see who is appointed as Pensions Minister and what existing pensions policy developments they look to accelerate, put on the back-burner or bin altogether. Labour has dropped its plans to reintroduce the Lifetime Allowance and has no current plans for further changes to pensions taxation. However, this falls short of an outright commitment to leave pensions tax alone, and pensions might be seen as a convenient target for ‘stealth’ taxes when fiscal circumstances are tight.”

IMI

The Institute of the Motor Industry welcomes the opportunity to engage with the new government as the result is declared for the 4^th July 2024 General Election.

The Labour party clearly identified its understanding of the importance of skills for UK infrastructure in its manifesto; it was also the only party with a dedicated Automotive policy which recognised the contribution the motor industry will play in achieving net zero goals.

With a stated plan to allocate £1.5 billion to new gigafactories, as well as restoring the phase-out date of 2030 for new cars with internal combustion engines, clearly there is no time to lose in addressing the current challenges around further education and apprenticeships, as well as uplifting skills in the sector.

The IMI will therefore aim to work closely with the relevant ministers as they are appointed, as well as the departments that will influence future education, skills and automotive policies, representing the interests of its members and the wider road using public to ensure UK automotive remains a global leader.

FEARLESS VENTURES

Dominic McGregor is the ex co founder of multimillion pound global corporation Social Chain built with Steven Bartlett, and current co founder of VC firm Fearless Adventures. In reaction to the lastest comments by our PM Sir Keir Starmer about clocking off on a friday at 6pm, Dominic has a strong response to the ideology our PM is touting.

“It’s just virtue signalling, the PM is making a statement for the sake of it rather than saying something he actually believes is possible. Of course he’s going to work past 6 pm, it’s the nature of the job and it’s expected within the responsibility of being the leader of the country. That never stops and ultimately the buck stops with him, so he will have to be available as often as is required. I just can’t see this 6 pm ideology being the case, I just think this is a virtue signalling statement, rather than realistic intent or even possible”.

Reflecting on how much work is ahead of the new Prime Minister to bring about the changes he’s promising to ‘Fix Broken Britain’, which was a big part of the campaign messaging that won the election for the Labour party, Dominic added “With the sheer amount of work that needs doing, it will take twice as long if you work half as much. I think there’s definitely a requirement to put in some long and hard shifts initially to bring about the changes he promised.

That’s what we want to see from people in charge of the country. Commitment to delivering on the promises they made that swung the votes, to prove they are willing to go the extra mile for the country, just as he promised he would do under the Labour government”.

AURORA CAPITAL

Managing Director of business funding specialists Aurora Capital said: The incoming Labour government has emphasised its commitment to supporting UK businesses and startups throughout the election campaign, and now all eyes are on them to fulfil these promises.

Labour’s manifesto includes encouraging plans for startups and SMEs, but the details of their implementation remain to be seen. The proposed reform of the British Business Bank is particularly welcome, as it promises to help startups and small businesses access much-needed funding. While this is a positive step, the specifics of these reforms are not yet clear.

For aspiring shop owners, the upcoming business rate reform could help them turn their dreams into reality. High business rates have long priced new businesses out of our high streets, and these changes could help reverse this trend.

For startups and small businesses to thrive, they need support, stability, and a growing economy. If the new government delivers on its promises, we could see a positive environment in which SMEs and entrepreneurs can flourish. However, as always, the devil is in the details, and we await further information on how these promises will be realised.