Economic Secretary speaks at ABI’s Annual Conference

Andrew Griffith MP, the Economic Secretary to the Treasury, has delivered his keynote speech at the Association of British Insurers’ Annual Conference highlighting government action which aims to promote growth and competitiveness in the insurance sector.

Mr Griffith drew on the historic innovation and success of the UK’s insurance market to frame the government’s goals for the future: for the UK to have an innovative, business-friendly and agile economy; to deliver broader and more inclusive economic growth; and to tackle various socioeconomic issues including an ageing society, genomics advancements towards saving nature, and adapting to climate change.

Mr Griffith made observations on the UK’s economic performance amidst the current challenging climate, noting it should be viewed within an international context. Although the UK is facing an energy cost crisis, so too are many other western countries. He argued that although employment has not returned to pre-pandemic levels, the UK has one of the lowest unemployment figures it has seen in the past 50 years. Despite having risen, inflation is lower than 14 EU countries. He also noted that the private sector has grown 7.5% in the last year.

The speech sets out the government’s vision for the UK as an ‘enterprise culture’ built on low taxes and  an ambition to be ‘the most competitive tax regime of any major country’, rewards for risk-taking, access to capital, and utilising the opportunity to reform UK regulation post-Brexit. The Edinburgh reforms and Solvency II were mentioned as key steps toward that vision. Mr Griffith welcomed ABI members’ offer to assist the government with tracking the benefits of Solvency II, which is projected at one hundred billion of additional investment in productive capital over the next decade. Mr Griffith acknowledged the disruption to industry arising from technological advancements such as advanced analytics, cloud computing and AI. He asserted growth and innovation in the insuretech sector was necessary to maintain international competitiveness, and that in 2021 alone this sector raised of £770 million in investment. Mr Griffith also highlighted the importance of the UK’s social care system given the ageing population, and said that the government remains committed to tackling this area despite its decision to delay charging reform.