Royal & Sunalliance is urging the courts to ignore recommendations made by Sir Michael Ogden over how to calculate damages' awards for claimants with long-term injuries.
Ogden has advocated judges using a discount rate of 2% to calculate multipliers for future loss, or whatever the financial figure for index-linked government securities is at the time.
He made his comments as the fourth edition of the Ogden Tables was published, which gives guidance on the calculation of multipliers in perosnal injury.
But the current rate is officially 3% and the Lord Chancellor is due to announce whether this is due to be changed in the autumn.
Helen Hatchek, liability underwriting manager, said adopting a moveable rate would be unfair for both insurers and claimants.
“It would mean insurers cannot plan, and for claimants it could be disastrous because the rate could go up as well as down,” she said.
The Forum of Insurance Lawyers also criticised Ogden for saying the courts should now adopt the Law Commission's recommendations in Fatal Accident Act claims. This would mean that multipliers should be calculated from the date of trial, not the date of death.
“Foil cannot accept any attempt by the working party to bring into effect a change in the law by this means and the text could be misleading to practitioners,” a statement read.
