Ross Sinclair, CEO and founder at embedded insurance firm EIP, has shared his hopes for the Insurtech sector and possible policy changes announced in the Chancellor of the Exchequer’s Autumn Statement. The budget will be revealed by Chancellor Rachel Reeves this Wednesday. Some Fintech insiders are concerned that the policy updates will not be supportive of innovators and entrepreneurs.
Sinclair says that the insurance industry impacts millions of people in the UK and the sector plays a key role in the UK economy. HE believes that, during a time when businesses and individuals are already struggling with the cost of living, any increase in the Insurance Premium Tax (IPT) would be passed through to consumers in the form of higher premiums. This will increase the number of individuals who will no longer be able to afford insurance.
“A freeze or, ideally, a reduction in IPT, would help to stabilise pricing and avoid undermining the take-up of insurance at a time when resilience has never been more important,” says Sinclair.
He also believes that investment and resource allocations to address cybercrime, fraud, and mobile theft should be high on the agenda.
“Reducing these crimes would improve insurers’ loss ratios and therefore keep premiums and costs stable for both businesses and consumers,” adds Sinclair.
It should be evident to all that excessive regulation stifles innovation and job creation while limiting investment across the financial services. Sinclair says it would be welcome to see the Labour government build upon plans for regulators, the FCA and PRA scale-up unit.
“Further clarity and operational details are needed on how exactly this will work in practice to encourage innovation in AI and reduce the regulatory burden. Well-structured regulation that encourages growth, without constraining it, is essential if the UK wants to remain a global Fintech and Insurtech hub,” Sinclair says.
