The Changing Ogden Rate and How Liability Rates will Reduce as a Result

The Ogden rate may sound an obscure thing, but it has massive implications both positively and negatively on liability settlements. All brokers, underwriters and claims staff should have a good understanding of the Ogden rate in order to explain rating changes to policyholders and understand why large liability claims will now be reducing.  

The Ogden rate is used by courts to increase or decrease large personal injury liability claims. It was one of the main reasons why the market went so hard in recent years when the rate started loading liability settlements, and it will be one of the man reasons why we will now go into a softer market due to the fact it will start discounting liability settlements.

The Ogden rate will mean good news for insurers. Will they be passing their savings onto their policyholders? well that will depend on how well brokers understand Ogden.

This presentation will be delivered by Alan Chandler, Chartered Insurer, one of the most popular presenters in the UK, and he will explain what the Ogden rate is and how it affects liability settlements.

Learning objectives:

• Understand the history of the Ogden rate and how we at one point ended up with three different rates in the UK.
• Understand how the Ogden rate changes cause significant premium swings.
• Understand why the recent Ogden rate change will bring about a reduction in liability rates in 2025.