3 November 2014
We understand that collections will not start until 2015 as the relevant law has not yet been approved. It is believed that the levy will be less than 3.0% and calculated on gross written premium in respect of current employer’s liability risks. It is an insurer levy and should be collected by the Motor Insurers Bureau.
The Regulations on the levy shall be laid before Parliament and may become law by the end of November 2014 (subject to implementation dates). This shall be in the form of a Statutory Instrument (SI) and should address:
how the market share could be calculated (total levy x relative market share of the individual insurer); and
the ‘trueing up’ process. Insurers could pay the levy based on two years prior gross written premium and then reconcile the amounts to reflect actual gross written premium. The ABI has been asked if the market still wants to adopt this process.
It is estimated that £35 million will be paid out of the scheme each year
(it is believed the first payment was made in July 2014).
If you require any additional information please contact: