Webinar - The negative Ogden rate update - Why existing limits of indemnity on EL/PL and Products can no longer remain the same
Webinar: The negative Ogden rate update - Why existing limits of indemnity on EL/PL and Products can no longer remain the same
Brokers/Insurance company staff if you do not understand the long-term implications of a negative Ogden in the marketplace then you will be failing your clients – this presentation will help you understand why Parliament’s decision to create and stick with a negative Ogden rate has an impact on ALL major liability injury claims. Even the traditional EL limit of £10m is now looking too small let alone PL limits of £2m.
In 2017 the Ogden rate was changed from a discount to a load on all major personal injury claims causing major losses to insurers across the UK, but the MOJ said they would row back from this but to the shock and dismay of the UK insurance industry it was announced that the rate in England and Wales long term would be -0.25 which meant awards would be loaded not discounted. Even worse for the insurance industry the Scottish government have set their rate at -0.75 meaning Scotland has the potential to see the highest court awards in the whole of Europe! But even more alarming if you are an insurer, is that Northern Ireland have set their rate at -1.75% this is the highest differential rate in the whole world!
To give you an idea of how liability claims are affected by Ogden, a liability claim which related to a young person that settled in 2017 for £6,670,000 would now be settling at £16,110,000 in England and Wales and £33,120,000 in Northern Ireland – brokers and underwriters you cannot ignore this!
This presentation will explain in plain English what Ogden is, and by way of examples, demonstrate why brokers need to be advising their clients on taking out larger limits of indemnity going forward.
This presentation will be delivered by Alan Chandler, Chartered Insurer, one of the most popular presenters in the UK, and he will outline why failure to talk through Ogden with you clients could lead to E&O exposures for brokers. Remember you advise on future protection not the past!
Learning Objectives
By the end of the session, participants will be able to understand:
- Understand the history of the Ogden rate.
- Understand how the Ogden rate change is causing significant premium increases
- Understand why it is essential that brokers inform their clients that existing limits of indemnity may not be enough going forward, even on EL.
Alan Chandler - Insurance Training & Consultancy
Alan has undertaken operational management roles in three major global companies running underwriting, broking and claims functions. In order to fulfil a long-term ambition, he set up his own training company, something that he had always longed to do as he is passionate about training.
Since then he has trained over two thousand people to become ACII qualified including six individuals who have achieved the best ACII completion in the whole of the United Kingdom, he has also trained many national prize winners.
Alan has delivered training for almost all the institutes in the UK over the past few years with his enthusiastic presenting style proving very popular. He is one of the few individuals who can teach at all levels of the Cii examinations, he teaches almost all certificate, diploma and advanced diploma subjects and is one of the few people who can take someone from certificate all the way through to fully qualified ACII and his pass rates exceeds 96%. Alan has presented across Europe on many technical subjects to companies including Allianz, Zurich, Aviva, Aon, Marsh Willis, Gallagher, Towergate and GRP. He has been involved in the setting up of many diploma and advanced diploma programmes in both the UK and Ireland and is driven by a passion to see increased professionalism within the insurance industry.
More recently Alan has been at the forefront of the webinar revolution delivering large amounts of content across Europe. A number of his recent pieces of work have been published internationally.
CII Accredited
This demonstrates the quality of an event and that it meets CII member CPD scheme requirements.
1 hour's CPD can be claimed for this event if relevant to your learning and development needs.
It is recommended that you keep any evidence of the CPD activity you have completed and upload copies to the recording tool as the CII may ask to see this if your record is selected for review. Details of the scheme can be viewed online at www.cii.co.uk/cpd.