Ageas welcomes this morning’s announcement that the level of assumed risk on which the personal injury discount rate is based being upgraded from ‘very low risk’ to ‘low risk’. The announcement was made as part of the introduction of the Civil Liabilities Bill.

Ageas UK CEO Andy Watson said;

The existing discount rate is having a detrimental effect on taxpayers, consumers, the NHS and the UK insurance industry. Our policy holders have endured over a year of high motor insurance premiums following the decision by a previous Lord Chancellor to set the discount rate unfairly low.

On behalf of our customers we welcome that the Government is now recognising a more accurate level of investment risk meaning that we can still provide a fair level of compensation for claimants, while ensuring the preservation of an insurance sector able to deliver this essential service to customers at a competitive price.

It is important now that the Bill progresses quickly, the panel put in place as outlined in the consultation and the discount rate revised accordingly.