Ogden the three different rates in the UK and how they are changing liability claims

Brokers/Insurance company staff if you do not understand the long-term implications of a negative Ogden in the marketplace then you will be failing your clients – this presentation will help you understand why Parliament’s decision to create and stick with a negative Ogden rate has an impact on ALL major liability injury claims. Even the traditional EL limit of £10m is now looking too small let alone PL limits of £2m.

In 2017 the Ogden rate was changed from a discount to a load on all major personal injury claims causing major losses to insurers across the UK, but the MOJ said they would row back from this but to the shock and dismay of the UK insurance industry it was announced that the rate in England and Wales long term would be -0.25 which meant awards would be loaded not discounted. Even worse for the insurance industry the Scottish government have set their rate at -0.75 meaning Scotland has the potential to see the highest court awards in the whole of Europe! But even more alarming if you are an insurer, is that Northern Ireland have set their rate at -1.75% this is the highest differential rate in the whole world!

To give you an idea of how liability claims are affected by Ogden, a liability claim which related to a young person that settled in 2017 for £6,670,000 would now be settling at £16,110,000 in England and Wales and £33,120,000 in Northern Ireland – brokers and underwriters you cannot ignore this!

This presentation will explain in plain English what Ogden is, and by way of examples, demonstrate why brokers need to be advising their clients on taking out larger limits of indemnity going forward.

This presentation will be delivered by Alan Chandler, Chartered Insurer, one of the most popular presenters in the UK, and he will outline why failure to talk through Ogden with you clients could lead to E&O exposures for brokers. Remember you advise on future protection not the past!

Learning Objectives

Delegates will be able to:

• Understand the history of the Ogden rate and how we have ended up with three different rates in the UK
• Understand how the Ogden rate change is causing significant premium increases.
• Understand why it is essential that brokers inform their clients that existing limits of indemnity may not be enough going forward, even on EL.

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