Ogden Personal Injury Discount Rate Changes
A key determining factor in quantifying large personal injury claims is what is known as the Ogden Personal Injury Discount Rate. This rate changed on 20 March 2017 and, as a direct result, payments in respect of serious personal injury claims have soared.
This level of increase is unprecedented and, being applicable to both new and existing claims, is resulting insurers having to collect more premiums to ensure that they have sufficient reserves to meet claims.
A Complex Calculation – But In Simple Terms …
The Ogden Personal Injury Discount Rate calculation is complicated, however, to get an idea of how serious this issue is for the insurance industry, a serious personal injury claim settled at £5,000,000, prior to 20 March 2017, would be adjusted to just less than £10,000,000, once the new rate has been applied.
What Sort of Rate Increases Are Likely?
It is suggested that, on average, insurance premiums will increase by 10-15%, however this is not something that we at Insurance2day are simply going to sit back and accept. The advantage of independent brokers, like ourselves, is that we do the shopping around for clients. By undertaking a comprehensive rebroking exercise, we aim to ensure that the premiums we offer continue to represent excellent value for money.
The impact of the Ogden Personal Injury Discount Rate changes cannot be underestimated, however we will look to review policies, to identify where further savings can be achieved.
If there are any policies you would like us to review , to see if further savings can be achieved, please complete your details here and we will get in touch.