Why You Need To Be Considering Increased Levels of Liability Cover

On 27th February 2017, the Lord Chancellor announced a cut in the discount rate, moving it from +2.5% to -0.75%. The discount rate reflects the level of investment return that a claimant can expect to achieve by investing of their award.

Claimants should receive a fair settlement of claims following an injury, but the decision to change the discount rate so dramatically has big implications in terms of the potential cost and affordability of insurance.

This change will apply to all claims settled on or after 20 March 2017 regardless of when the loss occurred and it will therefore have a significant impact on the cost of future settled claims.

In the full article we will show you some anonymised examples of real claims that illustrate how this change has impacted the value of the claim.

Read the full article here...