Implications to the Insurance Industry following the reduction in the Discount Rate
We are pleased to confirm that we will be running a lunchtime CPD session on the implications to the insurance industry following the reduction in the Discount Rate.
Advocate Lee Ingram FCII will provide an informative talk concerning the rationale behind the need for a discount rate and why the recent changes for the UK will have a long lasting effect on the local insurance industry.
Where: Jersey Museum - Ouless Room
When: Wednesday 10th May 2017
What Time: 1pm start
On 27 February, the Lord Chancellor announced that the discount rate used to calculate claims would be reduced from 2.5% to -0.75%. This was to take effect from 20 March 2017.
The decision implies that the Government expects that a plaintiff investing his/her damages settlement over their remaining life would get a negative return on investment, and the insurer must top up the expected loss. The change in the rate will have significant impact on insurers of motor and liability policies.
The announcement was met with criticism from across the insurance sector, highlighting the implications of the significant drop in the rate, and the fact that this will transmit to higher premiums for 36 million motor and liability policy holders, particularly those with higher risks such as young drivers or commercial users.
Please confirm if you wish to attend by replying to this email before 01st May 2017.
Also, please put the date of our next event in your diary:
The Jersey Financial Ombudsman Service
Date: 5th June
Further details to follow in due course
Tel: 01534 835353