Ogden Discount Rate

The aims of the Ogden Discount Rate working party will be focused on three key work streams:

• Consider issues and methodologies actuaries may need to allow for in respect of the core actuarial disciplines. This will include reserving, pricing, capital and reinsurance. This is likely to be principles based.
• Consider and understand the uncertainties and sensitivities associated with the assumptions underpinning the methodology used to advise on the setting of the discount rate.
• Establish a framework for estimating a forward looking view of the Ogden discount rate.

Each work stream will give allowance to the following:

• Consideration of the implementation of dual/multiple rates.
• Consideration of the discount rate in England & Wales as well as Scotland.
• Transparent reporting. The working party will report on findings and is not intended to influence the future setting of the personal injury discount rate.
• Implications for UK personal injury lines of business across both personal lines and London Market (re)insurers. 
• Overlap with other linked working parties such as PPO, AWP and any other UK injury working party and consideration of whether messaging should be consistent.  
• Intention to present at GIRO 2021.