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2009 - what awaits us? |
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Welcome back to what will undoubtedly be a very interesting year from whichever perspective you care to adopt. The economic environment will continue to be effected by our Banks' foreign liabilities which in turn create new thresholds for Sterling. How will this impact our Protection sector, and will 2009 prove to be the defining year in paving the way forward? This article will offer a micro perspective, just so that this doesn't get confused with Robert Peston's blog! Yes there are going to be changes including solvency recalculations due to self imposed new accounting regulations, cost reductions across the board and subsequently further consolidation of the market. Medibureau closed out 2008 with new clients on-board and an attractive pipeline of opportunities for 2009. I hope I will not come to regret this statement, but frankly, in this current climate, if an outsourcer can't justify its existence today, then the future is not looking too promising. Cost Benefit Analysis is an exercise which is operating within every Life Company and organisation. The sector of our market which has felt the full force of the economic down turn is the Intermediary and IFA market where a reliance historically on certain products has caused a significant fall in their respective revenues. An educational process is underway to familiarize themselves with those risk products which did not command their attention during the property boom market. Let's hope that we all benefit from distribution channels' efforts in providing and sustaining revenue streams for all within the sector. A momentous decision was made in December 2008 by the HMRC, after protracted negotiations with Medibureau regarding the Employment of Nurses who conduct underwriting medical screenings. The HMRC has finally agreed with Medibureau, that these nurses should maintain their schedule D self-employed status. This is in contrast to their initial view that the nurses should have PAYE and NI contributions applied to their fees. The impact of this decision would have been devastating for our clients and indeed the industry at large. We wait as to whether a decision will be forthcoming during 2009 by the HMRC relating to VAT being applied to Medical fees. Medibureau is working with its clients to minimise the inevitable impact of this decision. I remain quite positive as to how our industry will react to and be affected by this unprecedented economic environment. To pinch a phrase "These are extraordinary times requiring....."
Richard Freeman
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