General Insurance Article - 15 Insurance CEOs meet Chancellor about discount rate change

Fifteen CEOs of the UK’s biggest motor and commercial liability insurers will meet the Chancellor and call on him to intervene and stop Liz Truss’s ‘crazy’ decision to cut the discount rate.

 The announcement by Liz Truss that the discount rate would be cut from 2.5% to -0.75% triggered predictions from insurance experts that premiums for young drivers could rise by up to £1,000 a year. Estimates also suggest that it could cost the NHS around an extra £1billion a year in compensation bills.

 Top level representatives from the insurance industry are now heading to see Chancellor Phillip Hammond, and will call for a swift change in the law through the Prison and Courts Bill to stop the change hitting motorists, businesses and taxpayers.

 ABI Director General Huw Evans said: “The Chancellor will today hear just how concerned insurers are about the way this change will hit their customers. It makes no sense to do something that will cost motorists, businesses and taxpayers so much at such a difficult time based on a broken formula. It is not too late for the Government to deliver a fairer deal for consumers and claimants and it should commit to urgent reform of the law before this crazy decision becomes a reality.” 

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