Protection and health insurance advisers have raised hopes Rishi Sunak’s appointment as prime minister will reassure markets and in turn have a positive impact on their sectors.
Sunak was appointed PM earlier today after his only rival Penny Mordaunt dropped out of the race to succeed Liz Truss, who resigned last week after the shortest stint of any UK prime minister in history.
Last week intermediaries told Health & Protection that following Liz Truss’ resignation after her disastrous spell in office, they felt a general election was essential alongside a more stabilised leadership.
Miles Robinson, owner of Home Group Financial, told Health & Protection that Sunak’s appointment has given him confidence that someone with his background and experience has moved into Number 10 during the volatile times
“What we have seen over the last few weeks with Liz Truss and former chancellor Kwasi Kwarteng, they put us in this hole so quickly,” Robinson said.
“I don’t think anything is going to prevent a recession from Covid and everything else that has happened in the markets, but the way it happened, there were ways of mitigating the impact on the mortgage world and the knock-on effect on protection. It put the fear of God in everybody.
“So, I think he should be able to provide a little bit more confidence whereas Truss and Kwarteng just didn’t.
“They were like rabbits in the headlights, Sunak certainly doesn’t operate like a rabbit in the headlights,” he added.
Marcia Reid, non-executive director at Sherwood Healthcare, agreed, adding she was pleased to note that the markets have already reacted positively to Sunak’s appointment.
“The pound appears to be nudging upwards. Anything that improves the economy is good for mortgages and protection insurance and perhaps as significant – the health and wellbeing of the workforce,” she said.
Inflation and NHS priorities
Reid added that in a perfect world, Sunak would cut Insurance Premium Tax (IPT) – but in the likely event that this will not happen, she called on the new PM to get inflation under control.
“He needs to make it easier for businesses and individuals to invest in their health and wellbeing. Let us not forget the NHS though and clearly this should be at the top of the list for public spending.”
Isaac Feiner, owner of Lifepoint Healthcare, also expressed hope that Sunak’s appointment would stabilise the markets a little and give the public a much-needed boost and sense of calm.
Although Feiner added: “As I’ve stated many times, it would behove Mr Sunak to apply relevant tax breaks on health and protection products and encourage more take-up. The NHS waiting list numbers are continuing to rise and this will be a big help.”
