Insurers hit as discount rate cut from 2.5% to minus 0.75%

liz-truss

The Lord Chancellor and Justice Secretary, Liz Truss, has cut the discount rate - also known as the Ogden rate - from 2.5% to minus 0.75% effective 20 March 2017.

The rate is used by courts when applying a calculation to the returns on the lowest risk investments, typically Index Linked Gilts, for victims of life-changing injuries who accept lump sum compensation payments.

The actual amount they receive is adjusted according to the interest they can expect to earn by investing it.

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