IPT errors could reduce underwriting profits by 15%
FiscalReps predicts that errors in insurance premium tax could cause “significant drop in underwriting profits”.
Tax experts have predicted that just a 5% error in insurance premium tax (IPT) would cause underwriting profits to slump by 15% across UK markets.
Speaking at the Indirect Tax Academy event, Mike Stalley, founder and chief executive of FiscalReps, set out the potential costs of a mistake.
He explained that based on a typical IPT rate across Europe of 15%, and an average combined operating ratio (COR) of 95% across the majority of the UK insurance market, a 5% IPT error could reduce underwriting
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