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Association of Personal Injury Lawyers

Insurers reap profits over personal injury discount rate

18 Jul 2017
APIL news

Lawyers warn that people with the most serious, life-changing injuries have been significantly undercompensated while insurers have “quietly reaped the profits”.  

A debate in the House of Lords tomorrow (18 July) will address a “motion to regret” the correction earlier this year of the ‘discount rate’ (sometimes referred to as the ‘Ogden rate’) for calculating personal injury claims.

“Since the correction of the discount rate the insurance industry has to pay full compensation to catastrophically injured people for the first time in years,” said Brett Dixon, president of the Association of Personal Injury Lawyers (APIL).

“The change was of no surprise to anyone. The very fact that it plummeted from 2.5 per cent to minus 0.75 per cent shows that the rate has been out-of-date for far too long. During this time insurers quietly reaped the financial benefits of not having to pay what they owe to people with life-long, life-changing injuries,” he said.

“Yet the insurance industry has been vociferous in blaming the correction for rising motor premiums. It is scandalous that the blame for the mismanagement of the discount rate is being put at the door of seriously injured people.

“This affects people with long-term financial losses, such as loss of earnings and the cost of round-the-clock care. When insurers don’t pay for these needs as they should taxpayers, through the State, must pick up the tab”. 


Notes to editors:

  • APIL (Association of Personal Injury Lawyers) is a not-for-profit organisation whose members are dedicated to campaigning for improvements in the law to help people who are injured or become ill through no fault of their own.
  • For more information contact APIL's press and communications officers Jane Hartwell on t: 0115 943 5416, m: 07808 768623, e:, or Lizzy Freeman t: 0115 943 5431, e:
  • Visit the association's website at
  • • Follow @APIL on Twitter:

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More past press releases

Head of Public Affairs
Lorraine Gwinnutt
0115 943 5400

Communications Manager
Jane Hartwell
0115 943 5416

Press & Communications Officer
Lizzy Freeman
0115 943 5431