Ogden Rate Update! What it means for your insurance

27th February 2025

On January 11, 2025, the Ogden Rate (Personal Injury Discount Rate) changed from -0.25 to 0.5—a shift that, while small in percentage terms, carries major implications for liability claims and insurance premiums

Ogden Rate Update – What It Means for Liability Premiums

On January 11, 2025, the Ogden Rate (Personal Injury Discount Rate) changed from -0.25 to 0.5—a shift that, while small in percentage terms, carries major implications for liability claims and insurance premiums.

What is the Ogden Rate?
It’s the discount rate used in personal injury claims, impacting how compensation is calculated. This latest adjustment aligns the rate in England and Wales with those already set in Scotland and Northern Ireland in September 2024.

Why does this matter?

• Potentially lower liability premiums for businesses.
• Impact on insurer reserves—with concerns about overcompensation shifting.
• Long-term market effects—the last major change in 2017 led to a hard market; this adjustment could contribute to a softening market.

What’s next?
The government will continue reviewing the Ogden Rate, meaning future shifts could influence liability settlements and insurance pricing further. As a broker, understanding these changes is crucial to ensuring clients get the best advice on their liability risks.
At Gallagher insurance brokers, we stay ahead of these developments, helping businesses navigate changes and optimize their insurance programmes. If you'd like to discuss how this affects your coverage,  please get in touch with:

Scott Simpson - scott_simpson1@ajg.com
Laura Booth - laura_booth@ajg.com

or call 0114 2901111