CBI comments on personal injury rate change

Carolyn Fairbairn, CBI Director-General, said:

“The unexpected, significant cut to the discount rate is a setback for the UK’s world-leading insurance industry. It subjects insurance companies to a large and sudden shock at a time when stability and predictability should be prioritised.

“We support a fair framework for claimants and defendants, but the way in which the discount rate is calculated is flawed, as it is based solely on short term market movements.

“It’s important that the planned consultation happens straight away, to make sure long term economic factors are included in the calculation of the discount rate.

“From the increasing strain of business rates to questions over the UK’s future relationship with Europe, the cumulative burden of challenges is weighing on UK companies. Now more than ever, it is critically important that firms have a stable policy framework to in which to grow, invest and drive prosperity for all parts of the UK.”