Insurers face ‘eye-watering’ bill from discount rate changes in Scotland

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Because Scotland's courts are unable to rule for periodical payments on most settlements, insurers could be faced with huge upfront costs on claims, said Frank Hughes, partner at BLM's Glasgow office. The Scottish government this week reduced the country’s discount rate to minus 0.75%, mirroring the changes in the UK. In a policy note, the Scottish government said it had carried out no financial impact study before making the changes. Hughes said: “The Scottish government has always done t