Liability Risk and Insurance
Government proposals could see rise in personal injury discount rate
The government has announced measures to change the way compensation payouts are calculated which it said would mean that
the discount rate might be in the region of 0 per cent to 1 per cent. In February this year the discount rate was reduced
from 2.5 per cent to minus 0.75 per cent. The changes, proposed in the draft legislation, mean the rate would be set by reference
to “low risk” rather than “very low risk” investments.