On 15 July 2019, David Gauke, the latest in a lengthening list of former Lord Chancellors, set a new discount rate of -0.25%,
coming into force on 5 August 2019. This should end more than two years of uncertainty that has stalled the resolution of many serious injury claims. However, in doing so, he has left many in the insurance industry acting like they did not
get the birthday present they had been promised.
Huw Evans of the Association of British Insurers was so outraged last week he wrote to the Lord Chancellor to complain that the government’s impact assessment failed to reflect that the -0.75% rate was ‘not widely adopted’. He ignored the fact that since the -0.75% rate came into force it has been the only rate used by courts. In that respect, it has been wholly adopted. No doubt, countless ‘door of the court’ settlements also took place at this rate.
Insurers
