Ogden discount rate increase "does not go far enough"

On Monday, the Ministry of Justice announced a slight increase from -0.75% to -0.25% in the Ogden discount rate, to be effective from 5 August. However, the latest announcement has been met with consternation, with industry experts commenting that the increase is not sufficient.

The Ogden discount rate is used to calculate the amount of compensation a victim will receive from their insurer to cover the cost of future care. The rate is set by the Lord Chancellor and was previously set at 2.5% before reducing to -0.75% in 2017. Even with the latest increase, this remains the lowest discount rate in the Western world, according to the Association of British Insurers (ABI).

Simon McGinn, General Manager, Commercial & Personal, said:

"We believe providing seriously injured people with a fair level of compensation is the right thing to do but the insurance industry is currently overcompensating. While today’s announcement has signified a move in the right direction, unfortunately the new rate of -0.25% does not go far enough.

"An opportunity has been missed to further tackle the increased cost of settling personal injury claims, which ultimately contributes to rising customer premiums. Whilst there was still some uncertainty, our approach was to maintain the status quo and reflect the current rate in our pricing until a formal decision was made""

Allianz CEO Jon Dye was one of a number of insurance industry leaders to sign a letter to the Lord Chancellor publicly committing to passing on to customers cost benefits arising from Government action to tackle the extent of exaggerated low value personal injury claims.

News Article

Insurance fraud - claims exaggeration

In this article, James Burge, head of counter fraud, Allianz Insurance plc, outlines what constitutes fraudulent exaggeration, the impacts on the policyholder and how we should work together to reduce the frequency of claim exaggeration.

Press release

Allianz develops machine-learning tool to support growing fraud claims

With the exponential rise in sophisticated technologies, Allianz aims to stay one step ahead in combatting fraudulent insurance claims with AI technology.

two engineers walking towards wind turbines

Insight & expertise

Sustainability in the motor repair industry

Rising repair costs are putting pressure on the motor insurance sector, with the latest figures from the Association of British Insurers showing that the current average private motor insurance premiums are 15% higher compared to Q1 2022.

News

Allianz Holdings announces UK employee EV salary sacrifice scheme

As part of its new rewards and benefits roadmap Allianz Holdings has unveiled an electric vehicle (EV) salary sacrifice scheme for its UK employees.

Press release

Allianz partners with Lightfoot to support Elite Driver Championship

Allianz Commercial has announced its sponsorship of Lightfoot’s driver engagement initiative, the Elite Driver Championship, to encourage safer and more sustainable driving amongst the UK’s motor fleet drivers.

Press release

Directors and officers insurance insights 2023

Being the director, partner or officer of a company is a great way to shape a business and contribute to its success. But, as these individuals are also personally liable for the actions they take in their roles, understanding and mitigating these risks is essential.

Insight & expertise

Theft is on the rise, so what can you do to protect yourself?

Over the past twelve months the UK has faced a number of unsettling economic changes. In this series we’ll investigate the most common types of theft that we’re seeing and advise on how best to mitigate them. First up is motor theft.

Press release

Allianz receives seventh marque for claims service

Insurance consultancy Gracechurch has awarded Allianz its Service Quality Marque (SQM) for the seventh year in a row, after UK regional brokers rated Allianz Commercial’s claims service as consistently outstanding.

Press release

Allianz leverages green parts and approved repairers to boost claims efficiency

Allianz Commercial has refreshed its fleet policies to reduce repair times: new wordings prescribe the fitting of green parts and encourage the use of approved repairers.

Insight

Driver considerations for fleet managers

Switching to an electric fleet can bring considerable benefits to its employees. But, as it’s a significant transition, there are plenty of considerations for fleet managers, especially when it comes to their drivers.

Insight

Going electric - considerations for fleet managers

Switching to an electric fleet can bring considerable benefits to an organisation, its employees, customers, and the environment. But, as it’s a significant transition, there are plenty of considerations for fleet managers

Insight

Business considerations for fleet managers

Switching to an electric fleet can bring considerable benefits to an organisation. But, as it’s a significant transition, there are plenty of considerations for fleet managers and the impacts it could have on the business.

Insight

Charging considerations for fleet managers

Switching to an electric fleet can bring considerable benefits to an organisation, its employees, customers, and the environment. Charging an electric fleet can produce challenges for a fleet manager and produce a number of considerations.

Insight

What's driving motor claims inflation?

We’ve created a handy guide, in which we examine significant themes and factors influencing motor claims inflation, plus potential impacts for the insurance industry and its customers.

Press release

Allianz launches inspection service for electric vehicle chargers

Allianz's engineer surveyors can now inspect charging points for electric vehicles in commercial and industrial locations.

Ogden discount rate increase "does not go far enough"

Follow us

Related articles

You might also be interested in these other news and insight features:

Insurance fraud - claims exaggeration

Allianz develops machine-learning tool to support growing fraud claims

Sustainability in the motor repair industry

Allianz Holdings announces UK employee EV salary sacrifice scheme

Allianz partners with Lightfoot to support Elite Driver Championship

Directors and officers insurance insights 2023

Theft is on the rise, so what can you do to protect yourself?

Allianz receives seventh marque for claims service

Allianz leverages green parts and approved repairers to boost claims efficiency

Driver considerations for fleet managers

Going electric - considerations for fleet managers

Business considerations for fleet managers

Charging considerations for fleet managers

What's driving motor claims inflation?

Allianz launches inspection service for electric vehicle chargers