General Insurance Article - Election 2015 – Aon comments on implications

 “From a more near-term investment markets angle, our view is that attention will soon turn to other issues, some of which are completely outside the UK. Even the market moves that we have seen today are not entirely to do with post-election reactions. Bond yields globally fell back late yesterday and equities showed signs of a revival in global markets. Sterling is probably the most reliable gauge of how international markets perceive UK PLC, and here, the assurance of political and economic policy continuity has clearly helped.”
 
 On pensions
 Lynda Whitney, partner at Aon Hewitt, said
 “The Conservative Party’s overall majority, although small, may allow for a period of relative stability in the pensions industry as many of the Coalition Government’s policies are allowed to bed in. In particular, recently announced measures such as the increase in the normal minimum pension age to 57 from 2028 and the reduction in the Lifetime Allowance to £1 million from 2016 will be able to proceed into legislation. The decision not to lower the standard Annual Allowance might be expected to remain government policy.
 
 “We would expect the new government to put into effect the pensions measures set out in the Conservative Party’s General Election manifesto, including the continued use of the ‘triple lock’ for State Pension increases and the reduction in tax relief on pension contributions for people earning more than £150,000.”
 
 On employment and apprenticeships
 Dominic Christian, CEO, Aon UK Ltd today said:
 “As a leading employer in the UK, committed to investing in apprenticeships, we welcome the new government’s stance on developing young talent, and we look forward to working with the government to continue the evolution of its trailblazer apprenticeship programme.”
 
 On the UK reinsurance industry
 Dominic Christian said:

 “We look forward to working with the government, and regulators, to develop a new competitive tax structure that allows insurance-linked securities and other financial vehicles, which have grown in prominence in the global reinsurance market, to be domiciled in the UK.”