The Reich Group of Companies comprises Reich Brokers, Reich Insurance Ltd and Reich Healthcare Ltd.

Reich Brokers and Reich Insurance Brokers Ltd are independent insurance brokers and both are authorised and regulated by the Financial Conduct Authority (FCA) under the following registered numbers: -

Reich Brokers – 623751
Reich Insurance Brokers Ltd – 300416

You can check this on the FCA's Register by visiting the FCA's website www.fca.gov.uk or by contacting the FCA on 0845 606 1234.

The Financial Conduct Authority (FCA) is the independent body that regulates financial services.

We place general insurance business with a range of insurers, underwriters, agents and sometimes other intermediaries.

We are members of the British Insurance Brokers Association (BIBA).

We regularly check the financial strength of the insurers with whom we place business by reference to Standard & Poor's published insurer ratings. It should however be noted that the claims-paying ability of even the strongest insurers can be affected by adverse business conditions. We cannot therefore guarantee the solvency of any insurer or underwriter.

Documentation

Our aim is to produce documentation and correspondence in a clear and understandable format. In the event of any uncertainty we would ask you to let us know immediately. Our staff are always happy to clarify the cover provided.

You should check all policy documentation issued by insurers to ensure that the details are correct and the cover provided meets with your requirements. Any errors should be notified to us immediately. We may keep certain documents such as insurance certificates, whilst we are awaiting full payment of premium, fees or administration charges, or if you ask us to do so. In these circumstances we will ensure that you receive full details of your insurance cover and provide you with any documents which are required by law.

Methods of Payment

We are responsible for issuing invoices detailing the premium, taxes and fees (if applicable) for all new policies, renewals and mid-term alterations.

You are responsible for paying promptly all invoices to enable us to pay your insurer in respect of your insurances. Please note that we have no obligation to fund any premium, taxes or fees (if applicable) on your behalf and we have no responsibility for any loss you may suffer as a result of insurers cancelling the insurance or taking any other prejudicial steps as a result of late payment where it is substantially attributable to you.

We normally accept payments by cheque. It may however be possible to spread payments through insurers’ installments schemes or an independent credit facility.

We will provide full information about premium payment options when we provide quotations.

Insurance Premium Tax (IPT) is increasing from 1st June 2017

As announced in the Autumn Statement, the Government will introduce legislation in the Finance Bill 2017 to increase the standard rate of Insurance Premium Tax (IPT) from 10% to 12% in the United Kingdom.

The new standard rate of IPT will be due from 1 June 2017 on insurance premiums received on or after 1 June 2017 which relate to risks for which the period of cover under the terms of an insurance contract begins on or after that date.

Premium payments relating to risks for which the cover begins prior to 1 June 2017 that are treated as received prior to the 1 June 2018 will be liable to IPT at the old rate. Premium payments relating to risks for which the cover begins prior to 1 June 2017 that are treated as received on or after the 1 June 2018 will be liable to IPT at the new rate.

There will be a backstop date of 1 June 2018 from which all premiums received will be subject to the increased standard rate of IPT regardless of whether they are received in respect of new or existing risks and regardless of when the cover for those risks begins under the contract.

Mid-Term Adjustments:-

  • If the MTA results in a reduction in premium and a refund is required, IPT will be credited at the rate applied to the premium being adjusted
  • If the MTA results in an additional premium being charged for a policy with term start date before 1 June 2017, where the additional cover starts before the backstop date and which is processed up to and including 31 May 2018, it will be subject to the 10% IPT
  • If the MTA results in an additional premium being charged for a policy with term start date on or after 1 June 2017, it will be subject to the 12% IPT
  • Any additional premiums processed after 31 May 2018 irrespective of policy or cover effective date will be subject to the 12% IPT

Please rest assured that we will do all we can as your broker to limit any other increases in your premiums at renewal, in order to assist you in dealing with this increase in Tax.
 
As always please contact your Account Handler/Manager if you have any queries concerning this subject.