LONDON, Feb 28 (Reuters) - Chief executives of 15 of Britain’s biggest motor and commercial liability insurers will meet finance minister Philip Hammond on Tuesday to ask him to stop this week’s “crazy” discount rate decision, an industry trade body said.
Some motor insurance stocks slid on Monday and analysts warned insurance premiums would rise after the Ministry of Justice slashed the discount rate used to calculate lump sum payments for personal injury claims, pushing up the size of the payments.
“It makes no sense to do something that will cost motorists, businesses and taxpayers so much at such a difficult time, based on a broken formula,” Huw Evans, director general of the Association of British Insurers, said in a statement.
“It is not too late for the government to deliver a fairer deal for consumers and claimants and it should commit to urgent reform of the law before this crazy decision becomes a reality,” he said.
Reporting by Carolyn Cohn; editing by Lawrence White