Nobody saw it coming. The Conservative election win is up there with the other great shocks of the 21st century: Pluto reclassified as a dwarf, WMD goes missing and Nigel Farage is replacing Jeremy Clarkson on Top Gear!
So now the TV event of the year is over and we must get back to business. But what does it all mean?
Well, by all accounts, it’s more of the same. The Bank of England is not raising interest rates for the foreseeable future, inflation remains broadly on target at 2% even though the BoE May report records inflation being at its lowest since CPI records began.
The new government wants to continue building a stronger economy for us all, which should be good news for the financial services sector, but what about the clients, the backbone of the industry’s revenue base?
The macro economic factors are supported by our latest indices, which show a general increase in the Tender Price Index (TPI) of approximately 5% per annum over the next four years.
The table below shows the GBP movement over the last three years against currencies where plant & equipment is typically sourced. The question that clients should therefore consider is “can my sums insured withstand these price increases and has suitable allowance been made since the original valuation?”
Vote with your feet – elect Rushton to reinforce your values.Whether the new government heralds a time for development or provides a safe harbour to consolidate, only time will tell, though one suspects the oil price will be the biggest driver for change. But the continued soft insurance market and the importance of efficient insurance purchasing suggests the time is ripe for all companies to review their policies and the values upon which they set their insurable limits.