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The Lord Chancellor will today confirm that the Discount Rate in England and Wales will be set at -0.25% following the completion of the review process set out within the Civil Liability Act
The Lord Chancellor will today confirm that the Discount Rate in
England and Wales will be set at -0.25% following the completion of
the review process set out within the Civil Liability Act.
The new rate will take effect on 5 August 2019.
The next review will need to be concluded within a five-year
review per the methodology set out within the Civil Liability
Act.
-0.25% is a poor result. Yes,
it's better than the existing -0.75%, but it remains woefully
inadequate. From the industry's perspective, it tips the odds
too much in favour of claimants at the expense of insurance-buying
motorists and businesses, who will inevitably have to dig deeper
for insurance costs.
A statement from the Lord Chancellor confirmed that the
Government Actuary had provided analysis on a potential dual rate
– similar to that recently established in
Jersey - but concluded that a single rate remains the most
satisfactory method.
A full statement of reasons and an impact assessment regarding
the decision are due to be published.
A further update setting out the implications of this decision
will follow.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
