The government has intimated that they will soften their stance on the announcement in March 2017 regarding how large personal injury claims are calculated. Back in March, large claim calculations had a provision built in that there would be no investment return on lump sum payments and infact the settlement would reduce by 0.75% each year – this made a huge impact to the actual settlement insurers had to fund. Find out more here. The new rate is likely to fall within the range of 0% to 1% (based on current market conditions) rather than -0.75% so it is a significant movement. However, nothing has been confirmed at the present moment in time so any claim calculations will still have to use the new calculation method that caused such unrest across the market earlier this year.
The government has intimated that they will soften their stance on the announcement in March 2017 regarding how large personal injury claims are calculated. Back in March, large claim calculations had a provision built in that there would be no investment return on lump sum payments and infact the settlement would reduce by 0.75% each year – this made a huge impact to the actual settlement insurers had to fund. Find out more here. The new rate is likely to fall within the range of 0% to 1% (based on current market conditions) rather than -0.75% so it is a significant movement. However, nothing has been confirmed at the present moment in time so any claim calculations will still have to use the new calculation method that caused such unrest across the market earlier this year.
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