Proposed Reform of the UK Discount Rate
Comment from the International Underwriting Association on the Lord Chancellor’s proposals for reform of the way in which personal injury compensation is calculated.
Dave Matcham, chief executive of the International Underwriting Association, welcomed the reform proposal. He said:
“The plans promise to establish a much fairer and more realistic assessment of investment strategies. In our response to the public consultation earlier this year, the IUA supported a move to break the link with index-linked government bonds. Assessing the rate against a wider range of investment products is a move that has widespread support. Its effect will be to create a more efficient insurance marketplace to the benefit of businesses and consumers across the UK.”