UK GOVERNMENT TO LAUNCH CONSULTATION ON DISCOUNT RATE CHANGES

The UK government is to launch a consultation on the planned changes to the discount rate for calculating personal injury claims. Lord Chancellor Elizabeth Truss shocked the insurance industry this week with her decision to slash the discount rate from 2.5% to -0.75%. The chancellor of the exchequer, Philip Hammond, has since met with representatives from the insurance sector and launched a joint statement with Huw Evans, director general of the Association of British Insurers. “It is important that going forward, personal injury discount rates are set at a level that is fair to both claimants and consumers. “The government will progress urgently with a consultation on the framework for setting future rates, and bring forward any necessary legislation at an early stage.“The industry will contribute fully to the upcoming consultation, and the government will carefully consider all evidence and arguments submitted.”