How the Ogden rate change impacts the insurance industry

Carl abbott | July 26, 2019

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It was announced on Monday 15 July that the Ogden discount rate will marginally increase from -0.75% to -0.25% with effect from 5 August 2019. This was a disappointing result for the insurance industry, which had anticipated a positive rate. The government had indicated to the industry and financial markets that the rate would be set between 0% and 1%. Consequently, insurers have based their claims costs on this which has helped to keep premiums down for customers. The impact is not just directly to the insurance industry, with the biggest single financial impact being felt by the NHS, which therefore impacts UK PLC and tax-paying individuals in England and Wales.

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