Survey Reveals Claimant View of Discount Rate20-Jun-2017
A survey into the personal injury Discount Rate has revealed the perceptions of Claimant practitioners.
The research was commissioned by leading QC Bill Braithwaite and has highlighted the perceptions and predictions of Claimant lawyers following the introduction
of the new -0.75% rate in March this year.
Former chancellor Liz Truss faced criticism from insurers when a new Discount Rate of -0.75% was announced. However, prior to the change, the rate had not been updated since 2001 despite pressure from Claimant practitioners.
When the new rate was announced, it was confirmed that it would be subject to review following a further government consultation.
PI Discount Rate Consultation
The research has revealed that 81% of Claimant practitioners believe that the government will release the findings of its latest consultation next year.
Other key findings include:
- Only 10% believe that the government will leave the rate at -0.75%.
- 16% believe it will change to 0%.
- 65% believe it will be amended to between 1% and 1.5%.
- 28% of Claimant practitioners have settled future loss claims since the rate change.
The government will be met with opinions from both Claimant and Defendant sides of the coin.
The majority of Claimant practitioners seem to be resigned to the fact that the Discount Rate will change.
Recently a different report highlighted that insurance companies had collectively suffered losses of £3.5bn following the change to the rate.
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