The Budget's lack of detail on what the Diverted Profits Tax means for the reinsurance industry by Colin Graham UK insurance tax leader at PwC.
George Osborne, The Chancellor of the Exchequer, said in his Budget speech: "Financial services are one of Britain's most important and successful industries, employing people in every corner of the country.
"We take steps to promote competition, back FinTech and encourage new business like global reinsurance."
Graham said: "The announcement today of a commitment to develop an Insurance Linked Security (ILS) regime in the UK is a boost for the insurance sector and should stimulate growth.
"This is good news and a direct response to engagement with the industry in the last few months on global competitiveness from a regulatory and tax perspective.
"Despite this and the government's recognition of the UK as a "world leader" in global insurance, it is disappointing not to hear any feedback on the broader competitiveness review that was announced in the Autumn Statement.
"The ILS announcement is very positive, but arguably does not go far enough. We also wait to see the detail of the Diverted Profits Tax that takes effect on 1 April to see whether government has listened to the industry's concerns in relation to its scope and associated concerns over complexity and global competitiveness."
