On 20 March 2017 the Personal Injury Discount Rate (PIDR), which is used to calculate lump sum compensation to people who have suffered life changing injuries, changed from 2.5% to minus 0.75%. This means that claimants can expect to receive more compensation, but it is likely to also mean an increase in insurance rates for your motor and liability policies.
This is because insurers, particularly those who are heavily exposed to large or catastrophic personal injury claims, will now need to pay out more expensive claims.
Brokers on our Insurance Services (RM3731) framework are ideally placed to help you deal with any issues you may face as a result of this change and we would recommend that, if you need advice, you speak to them as soon as possible to give them the best chance to help you.
We are also holding a series of insight days for customers interested in using our Insurance Services framework. At one of the recent sessions an insurance broker gave attendees useful hints and tips on what they can do to reduce the effect of this change to the rates they pay.
It is not too late to attend an event as there are still sessions taking place on 15 and 22 June, and 12 September.
The Ministry of Justice is responsible for setting the PIDR rate and is currently considering public responses to a consultation on how it may be set in the future. This means that there may be further changes and we will keep you updated on developments.
Got a question? Please get in touch.