Personal injury discount rate expected to change next October
Scotland’s personal injury discount rate (PIDR) is expected to change from October 2024 following a recent consultation, according to Clyde & Co.
The firm recently hosted a roundtable event where senior representatives from more than a dozen insurance companies debated the potential impact of proposed changes to the PIDR in the UK.
With statutory reviews of the discount rate taking place in all three UK jurisdictions over the next 18 months, the event was designed to give clients an insight as to the factors likely to shape policy and consider the practical implications of any changes for insurers, particularly in relation to claims handling.
During the event Vikki Melville, managing partner for Clyde & Co in Scotland, spoke about the current position in Scotland following the ‘call for evidence’ which closed on 11 July. While the Justice Directorate has yet to publish a response document, any changes to the Scottish PIDR are likely to be introduced in October 2024, she said.
Attendees also heard from a number of the firm’s legal and policy experts, alongside representatives from PwC, who provided updates on the latest position in Northern Ireland and England and Wales, the timeline for rate changes and how the firm will continue to examine the implications of different models under consideration.
Speaking after the event, Ms Melville said: “The prospect of changes to the discount rate in Scotland – combined with the impact of claims inflation, which is particularly acute in the catastrophic injury and large loss arena – will remain a critically important issue for insurers and claimants alike for the next 18 months.
“As such, we were delighted that senior insurance professionals and experts from PwC were able to join us in person for an engaging and insightful debate, and gain a deeper understanding of their peers’ views towards any changes to the discount rate.
“We look forward to continuing to guide and support insurers through the respective PIDR reviews in the UK which, with a 300-strong team specialising in catastrophic injury and large loss claims, we are uniquely placed to do.”