Ogden Rate

Young Professionals Group is happy to announce that their next event will focus on the Ogden Rate.

Brokers/Insurance company staff if you do not understand the long-term implications of Ogden in the Scottish market place then you will be failing your clients – this presentation will help you understand why the Scottish Parliament’s decision not to change the Ogden rate will mean insurance premiums in Scotland will have to be loaded compared to the rest of the UK.

Back 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. Most commentators felt this was an overreaction by the Government and even the Ministry of Justice themselves stated that the rate would soon revert to a discount rather than load. 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 still a load, worse was to follow, the Scottish government have said they will retain the rate at -0.75 meaning Scotland has the potential to see the highest court awards in the whole of Europe!

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

The presentation will also cover briefly the implications in the market of Solvency II and why the combined effect of Ogden and Solvency II are going to create a hard Scottish market, where the placement of high-risk trades like scaffolders and motor traders will find it increasingly difficult to find cover. In Ireland large court awards have seen 250 insurers exit their marketplace – will Scotland be next!

This presentation will be delivered by Alan Chandler, Chartered Insurer, who is widely regarded as one of the foremost insurance trainers in the UK, and through his role he has got to see how the marketplace is reacting to Solvency II and Ogden.

Learning Objectives

• Understand the history of the Ogden rate
• Understand how the Ogden rate change is causing significant premium increases
• Understand how the rate is having a more detrimental outcome on Scottish premiums than the rest of the UK
• Understand and be able to explain to your clients how Solvency II and Ogden is influencing the cover and premium being offered and how they are creating a hard market

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