Airmic, the association that represents UK risk managers and insurance buyers in some of the largest organisations in the UK, has welcomed the proposed changes to the personal injury discount, as announced today by the Ministry of Justice.
Airmic chief executive, John Ludlow, said in a statement:
“We welcome the proposed reforms as a much fairer outcome for insurers and policyholders. The changes reflect a more realistic view of investment potential, and the proposal to review the rate more regularly makes good business sense. We are grateful that the government has taken swift action to consult with the insurance industry and act on its advice.”
Airmic considered the timing and scale of the drop in discount rate announced in February as harmful to UK businesses as commercial policyholders, and its members have expressed concern about the likely impact on insurance premiums. The association has supported industry calls for a revision to the rate and the framework through which the rate is administered.
Mr Ludlow warned that today’s announcement must serve as a reminder to the government of the need for fully-consulted and coordinated policy in the future. “While we are pleased with today’s outcome, we once again urge the government to ensure that any future legislative or fiscal changes are fully consulted and the potential for a cumulative impact on the insurance industry and UK plc is considered.”