Marsh Networks’ David Hopwood on the seven issues a reduced discount rate creates for SME brokers
The Ministry of Justice’s decision to set a new discount rate for personal injury compensation awards at minus 0.75% seems likely to create turbulence in the market. Following widespread criticism, the government is currently reviewing feedback from its consultation and the findings are anticipated in August. David Hopwood, head of Marsh Networks, looks beyond the impact on insurers to the issues likely to affect independent brokers, and some strategies to help overcome them.
The impact on insurers of the new discount rate for personal injury compensation awards – and the knock-on effect in terms of rate increases of up to 20% across motor and liability classes – has been
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