Joint statement from Chancellor and ABI

More than a dozen CEOs of leading insurance firms met with the Chancellor of the Exchequer Phillip Hammond yesterday in a bid to reverse the decision to cut the discount rate to -0.75%.

The shock announcement was made on Monday by Secretary of State for Justice Liz Truss, with some experts predicting premiums for young drivers could spike by £1,000 as a result.

The insurance industry reacted angrily to the decision, claiming millions of motorists will pay the price in higher premiums. In an effort to convince the government to overturn the decision, the heads of leading insurers met the Chancellor yesterday to argue their case.

Meeting the Chancellor were Simon Kirby, economic secretary to the Treasury; Huw Evans, director general, Association of British Insurers; Mark Wilson, group CEO, AVIVA; Paul Geddes, Group CEO, Direct Line Group; David Stevens, CEO, Admiral Group; Tulsi Naidu, UK CEO, Zurich; James Lenton, chief financial officer, AIG Europe; Stephen Hester, Group CEO, RSA Group; Amanda Blanc, Group CEO, Axa UK&I; Steve Treloar, managing director general insurance, LV=; Jon Dye, CEO, Allianz UK; Andy Watson, CEO, Ageas UK; Steve White, CEO, British Insurance Brokers Association; Stuart Vann, CEO, Esure; Kevin Spencer, Group CEO, Markerstudy; Frank O’Neill, CEO UK and Ireland, Swiss Re; and Bronek Masojada, CEO, Hiscox.

Following the meeting, the Chancellor and Huw Evans issued a joint statement, ‘Claimants must get the money they’re entitled to following an injury in order to support their future needs. It is important that going forward, personal injury discount rates are set at a level that is fair to both claimants and consumers.

‘The government will progress urgently with a consultation on the framework for setting future rates, and bring forward any necessary legislation at an early stage. The industry will contribute fully to the upcoming consultation, and the government will carefully consider all evidence and arguments submitted.’