AM Best believes newly announced changes to the U.K. personal injury discount rate (PIDR), otherwise known as the Ogden Discount Rate, should be positive for the country’s non-life insurers.

In its new Best’s Commentary, “Outcome of the Ogden Rate Review Will Be a Relief for UK Insurers”, AM Best notes the new personal injury discount rate of 0.5%, announced in early December 2024, is within the expected range anticipated by U.K. insurers.

The new discount rate should ease the pressure on U.K. non-life underwriting results in what is an extremely competitive and price sensitive market. At present, it is not expected to have an impact on credit ratings.

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AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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