The cost of insurance is more than the costs of paying claims and expenses The government announced an increase in Insurance Premium Tax (IPT) in its budget statement earlier this year. The amount has gone up from 5% to 6% and is applicable from January 2011. The tax on travel policies will go up from 17.5% to 20%. These increases are unavoidable and, unlike VAT, cannot be reclaimed. All accounting transactions from January will include the new figures. (read more) "IPT and hidden costs of insurance"