Ogden rates: How to explain the increases to clients following the changes

The recently announced change in the discount rate will cost the UK insurance industry a one off adjustment of £7 billion and £2 billion per annum thereafter. This amount will have to be recouped by way of massive hikes in insurance premiums. Increases of 10-20% will become the norm, especially after reinsurance treaties are renewed, and high risk personal injury policies such as construction, haulage fleets and motor trade will see increases of well beyond this range.

It is essential that brokers and underwriters can fully explain these increases to their clients and this presentation will equip you to do just that. Remember, even claims-free risks will see premium hikes.

IFAs: With the recently announced change in the discount rate, commonly known as the Ogden rate or personal injury rate, your clients may find their pay-outs are impacted in terms of the size of the lump sum finally awarded.

This lecture may be of interest to you, so you can understand how these changes and the related premium increases have been explained to your client by their broker or insurer.

Learning Objectives
By the end of this lecture, delegates will be able to identify:
• the difference between special and general damages in liability claims
• how the Ogden table rates affect liability claims
• how the recent change in discount rate will affect premiums in the market place
• the capital implications for insurers following the Ogden table change

Speakers biography
Alan Chandler, Chartered Insurer from ITP Ltd, is one of the leading insurance trainers in the UK. He will explain the difference between special and general damages in liability claims and focus on how the change in the discount rate will completely transform the UK general insurance market. He will also explain which elements of liability claims will get changed by the Ogden tables (known as the discount rate) and which classes of business will not be affected. There will be worked practical examples to help you explain these changes to clients.

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