Personal injury Discount Rate: An update in anticipation of the 2024 statutory review

Overview

• The government is obliged to undertake a formal review of the PIDR within 5 years of the last review. The next formal review of the current statutory rate, under the Civil Liability Act (CLA) 2018 must begin by Summer 2024.
• On 3^rd November 2022 the Ministry of Justice (MoJ) confirmed it would commence a ‘call for evidence’ of the pros and cons of using dual or multiple discount rates for calculating future losses in serious personal injury claims in England & Wales. This call for evidence was a pre-cursor to the formal statutory review in 2024, looking to explore the potential make up of the review and the potential methodologies that may be adopted to calculate the appropriate PIDR.
• The setting of the PIDR will have material implications for the value of future losses and total claims costs and so the approach to be taken and the methodology adopted will be of utmost importance to underwriters and claims managers.

Learning Objectives

• A refresh of the approach to the setting of the PIDR and the statutory framework of the CLA.
• Understanding the advantages and disadvantages of a single or dual rate PIDR.
• Identifying the implications of the methodologies that may be adopted in setting the PIDR and the impact on damages awards

Bio

Mike Dobson is a Partner at Clyde & Co Birmingham. Mike leads the Catastrophic and Large loss Practice Group, responsible for its operational and technical excellence.

Mike manages a caseload of claims of the utmost severity to include TBI, spinal cord injury injury, fatalities and amputation claims.

He has acted for insurers for over 25 years, his role includes advising insurers on claims strategy and the developing legal landscape.

The Webinar will take place over Teams.