The unspoken exposure

If EU premium tax compliance is to be brought under control, insurers and insureds need to start discussing the issue openly, says Mike Stalley, chief executive officer of insurance premium tax consultancy FiscalReps.

European premium tax is an issue that seldom gets much airtime between insurers and their clients. It is a cost of doing business and a responsibility that is generally handled by the insurer as a matter of course. However, this seemingly innocuous backroom matter is generating increasing concern: insurers are struggling for a cost-effective way to manage this increasingly complex obligation; meanwhile, their clients are becoming more worried about the consequences of poor tax compliance.