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 . Policies would increase between £5 and £20 per policy per year Related stories: 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 ) 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 .