IUA calls for reform on the discount rate as increase in premiums are becoming 'sizeable'


The IUA has also said that a review of the UK discount rate must break its tie to index-linked government bonds and that review periods should be introduced to avoid sudden and costly alterations. The recent reduction of the discount rate to minus 0.75 will increase company reserves, raise premiums and potentially lead to more uninsured drivers, the association has said. Dave Matcham, CEO of the IUA, said that the industry is already seeing ‘sizable increases’ to premium prices: “Removing t