ABI slams “crazy” decision to cut discount rate to minus 0.75%
Trade body warns that up to 36 million customers could face higher premiums after the decision.
The Association of British Insurers (ABI) has slammed the decision by the Lord Chancellor to reduce the discount rate - also known as the Ogden rate - from 2.5% to minus 0.75%.
The move on the rate, which affects the calculation of compensation awards for serious personal injuries, will come in on 20 March 2017.
Huw Evans, director general of the ABI said cutting the discount rate to minus 0.75% was a "crazy decision".
He added: "Claims costs will soar, making it inevitable that there will be
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