Can you explain to your client the twenty percent premium increases following the Government change in the discount rate?

The recently announced change in the discount rate will cost the UK Insurance Industry a one off adjustment of £7 billion and £2 billion per annum thereafter. This amount will have to be recouped by way of massive hikes in insurance premiums. Increases of 10-20% will become the norm, especially after reinsurance treaties are renewed, and high risk personal injury policies such as construction, haulage fleets and motor trade will see increases of well beyond this range.

It is essential that brokers can fully explain these increases to their clients and this presentation will equip brokers to do just that. Remember, even claims free risks will see premium hikes.

Learning Objectives
· understand the difference between special and general damages in liability claims
· understand how the Ogden table rates affect liability claims
· understand how the recent change in discount rate will affect premiums in the market place
· understand the capital implications for insurers following the Ogden table change