Analysis

Ogden rate change causes overcompensation concerns for insurers

By Sam Barker 2025-01-23T08:00:00

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The government’s spring clean of the personal injury discount rate puts scrutiny on compensation see-saw, with market commentators dwelling on drivers for over and undercompensation

It was theoretical physicist Albert Einstein who once called compound interest the eighth wonder of the world, adding: “He who understands it, earns it – he who doesn’t, pays it.”

This bon mot accurately sums up the importance of changes to the personal injury discount rate, more commonly known as the Ogden rate.

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