Thu 12 Oct. 2017
Ogden Training Session
OGDEN TRAINING SESSION 5th OCTOBER 2017
On the 5th October, at a very well attended workshop at the Hilton Garden Hotel, delegates were treated to an informative and interactive session on the effect of the change to the Ogden rates, provided by Alan Chandler of TEACH and ITP.
As Alan lucidly explained, the Ogden tables were created by Sir Michael Ogden and are a set of statistical tables and other information for use in personal injury claims in the UK.
The tables are used to make it easier to calculate future losses in personal injury and fatal accident cases. Depending on the age of the claimant and their anticipated date of retirement (or date of death), it is possible to calculate the extent of such future losses, using a multiplicand and a multiplier.
By use of examples and anecdotes, Alan was able to demonstrate that the change from a discount rate of 2.5% to -75% in March of this year would cost insurers and other bodies (e.g. NHS) billions of pounds in increased costs, potentially justifying a huge increase in insurance premiums and placing a further financial burden on the NHS, at a time when the UK economy is not in a buoyant state.
A thoroughly entertaining workshop with Alan offering genuine insights into the process that led to the change to the rate change and with the latest Government announcement in September 2017, perhaps offering the insurance industry a little respite.