The government is starting a review of the discount rate today
The government has announced it is starting a review of the Ogden discount rate.
The review starts today and will last for 140 days, after which a decision will be taken on whether the rate should be changed or kept unchanged.
The announcement was revealed in a statement to the London Stock Exchange this morning.
It stated: “The Lord Chancellor will announce later today that the first review of the personal injury discount rate under the Damages Act 1996 as amended by the Civil Liability Act 2018 will start on 19 March 2019.
“The Act requires that the Lord Chancellor must conduct the review and determine whether the rate should be changed or kept unchanged within 140 days of and including the date on which the review starts: that is, on or before 5 August 2019.”
The ABI said the announcement was welcome news to the industry.
James Dalton, director of general insurance policy for the ABI, said: “Insurers remain committed to paying 100% compensation and want to see a process for setting the Discount Rate that delivers a fair outcome for claimants, motorists and taxpayers. The outcome of the review must deliver this, and we will continue to play our part to ensure that it does.”
“We welcome today’s announcement. Insurers remain committed to paying 100% compensation and want to see a process for setting the discount rate that delivers a fair outcome for claimants, motorists and taxpayers.
“The outcome of the review must deliver this, and we will continue to play our part to ensure that it does.”
Allianz general manager Simon McGinn tweeted his delight at the review.
“Great to hear that the review of the discount rate will formally commence today with an announcement from the Lord Chancellor. Focus now must be on a fair outcome from the review for claimants, policyholders and tax payers,” he tweeted.
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