The government is expected to announce next week its planned changes to the personal injury compensation discount rate, which has been described by as a “pressure cooker waiting to blow” that could negatively impact the insurance industry. Motor insurers may face a £ 6.1bn ($ 4.9bn ) bill if the government goes ahead with proposed changes to the way awards are calculated for compensation claims, consultancy Willis Towers Watson Andy Staudt 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 negative 0.5% , which would cost the industry £ 6.1bn .
Motor insurers may face a £ 6.1bn ($ 4.9bn ) bill if the government goes ahead with proposed changes to the way awards are calculated for compensation claims, consultancy Willis Towers Watson Andy Staudt 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 negative 0.5% , which would cost the industry £ 6.1bn .