The Ogden Discount Rate – what’s all the fuss about?
It was announced on Monday 27 February that the Ogden discount rate, the rate used to determine the value of compensation paid out to a personal injury victim, has been reduced from 2.5% to -0.75%, and the change took effect on 20 March 2017.
This is one of the most significant changes to the insurance industry in some time. The effect of the change will be to increase the amount insurers have to pay claimants, which will likely result in higher premiums and increased pressure on limits of indemnity.
If you need any further information or would like to discuss any aspect of this, please do not hesitate to contact us.