LONDON Feb 28 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
"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,"
(Reporting by Carolyn Cohn; editing by Lawrence White)