The New Discount Rate: what you need to know

On 27 February the new discount rate for injury claims was announced. The announcement was overdue but the decision to fix the rate at minus 0.75% likely came as a surprise to many. We know the change will increase claims spend, hit insurers’ bottom line, and impact premiums. We are currently awaiting a consultation on the future of the discount rate, and the timetable for any adjustment.

This seminar is intended to assist brokers, underwriters and claims professionals in considering the impact the change will have on their portfolio, and in dealing with customers who wish to know what the change will mean for them and what future changes are on the horizon.

Learning objectives

At the end of this event, the delegate will be able to identify:

• The way in which the discount rate is used in injury claims to calculate damages

• Which claims will (and which will not) be affected by the rate change, and the nature of the impact

• Claims behaviours which may emerge as a result of the change, including the impact on PPO claims

• The Government’s longer terms plans to reassess the way the discount rate is used.

James Arrowsmith is a partner in Browne Jacobson's Commercial Insurance department and specialises in personal injury and liability insurance. James and his team deal with injury claims of the utmost severity and have extensive experience in advising on claims in which the discount rate is applied, as well as those involving PPO.

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