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
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk.
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@insuranceage.co.uk
Most read
- Zurich strikes five-year capacity deal with MGA Freedom Services
- Aviva to open branches in Chelmsford and Southampton
- Pen inks £150m social housing capacity deal with SiriusPoint