Motor insurers may face a £ 4.9bn ( $ 6.1bn ) loss if the government goes ahead with proposed changes to the way awards are calculated for compensation claims , consultancy Willis Towers Watson has warned . Describing the planned adjustment of negative 1 % to the personal injury discount rate as a " pressure cooker waiting to blow " , WTW said the cost of providing the insurance alone would be $ 700 m per year . WTW has proposed that the discount rate be adjusted to 1 % , which would cost the government £ 1.7bn .
Motor insurers may face a £4.9bn ($6.1bn) bill if the government goes ahead with proposed changes to the way awards are calculated for compensation claims, consultancy Willis Towers Watson has warned. Describing the planned adjustment of negative 0.5% to the personal injury discount rate as a "pressure cooker waiting to blow", WTW said the cost of providing car insurance alone would increase £700m per year. WTW has proposed that the discount rate be adjusted to 1%, which would cost the industry £1.7bn.