It was announced on Monday that the Ogden Discount Rate has been reduced from 2.5% to -0.75%, and the change will take effect from 20 March 2017.
Commenting on the announcement by the Lord Chancellor of a reduction in the Discount Rate used to calculate compensation awards for serious personal injuries, Huw Evans, Director General of the Association of British Insurers, said:
Cutting the discount rate to -0.75% from 2.5% is a crazy decision by Liz Truss. Claims costs will soar, making it inevitable that there will be an increase in motor and liability premiums for millions of drivers and businesses across the UK. We estimate that up to 36 million individual and business motor insurance policies could be affected in order to over-compensate a few thousand claimants a year. Read more here