News analysis: Insurers gear up for discount rate change
Fears raised that premiums will rise and consumer churn may increase
Insurers have expressed concern over a possible cut to the discount rate, which is expected to result in large costs for the industry and drive up motor, pubic liability and employer’s liability rates for consumers.
At the time of writing, the government is reviewing the way the rate is calculated. Lord Chancellor Liz Truss is expected to make an announcement and reveal the new rate at the end of February or beginning of March.
The discount rate, which relates to personal injury damages (see
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