Discount rate cut could triple PI claims costs: Marsh

personal-injury-claim

The broking giant warned client’s to prepare for insurance rate rises at renewals, estimating that personal injury claims could increase by as much as one-and-a-half to three times under the new regime.   In February chancellor Liz Truss cut the Ogden discount rate from 2.5% to minus 0.7%. The change came into effect on 20th March. The Association of British Insurers warned motor premiums will rise as a result of the change; it will have a multi-billion pound impact on insurers' reserves.