Consultation on discount rate launched

liz-truss

The government has opened a consultation on how the personal injury discount rate should be set in the future, according to an announcement by Justice Secretary Elizabeth Truss.

The launch of the six week consultation comes following outcry from the insurance industry after Truss cut the rate from 2.5% to minus 0.75% last month.

The discount rate, also known as the Ogden rate, is used to help calculate lump sum payments of damages in personal injury claims.

Following the rate change the ABI

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