LV=: Discount rate mechanism ‘flawed’

LV= has joined the chorus of voices claiming the discount rate is flawed.

The government is holding a consultation to review the ‘possibilities for how, when and by whom the discount rate should be set, but does not make specific proposals.’

It’s looking at what principles should guide how the rate is set, how often should the rate be set, and who should set the discount rate.

Steve Treloar, MD of general insurance at LV=, said, ‘The current discount rate mechanism is flawed so it’s absolutely right government is looking to reform this. Urgent change needs to be delivered so that a new discount rate can be implemented, saving money for millions of drivers and businesses and helping younger and older drivers stay on the roads. We look forward to working closely with the Government on the consultation.’