In 2017, The Ministry of Justice reduced the Ogden Discount rate from 2.5% to -0.75%. Although this change did not appear that great, it has had a significant impact on insurer payments for serious injury claims.
Part two of The Civil Liability Act includes the first review of this rate, with a decision to be made by 7th August 2019.
At this stage, it seems likely the rate will settle at around 0.5%. This will greatly reduce claims compensation payments and it is expected that claimants will be offered settlement more in line with the anticipated figure over the next few months.