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Periodical Payment Orders (PPOs)

This Working Party investigates Periodical Payment Orders (PPOs) and their effects on the UK insurance and reinsurance industry

PPOs are a significant feature of insurers' and reinsurers' balance sheets already and are having an impact on pricing and capital modelling efforts of GI actuaries. The Periodical Payments Orders Working Party has been at the forefront of advising GI actuaries about the impacts on their work, such as the need to use life insurance techniques in reserving.

The Periodical Payment Orders Working Party also conducts an annual survey of the UK motor insurance industry about their experience of PPOs.  This has enabled:

  • creation and publication of statistics about number, quantum and nature of PPOs as awarded by the courts
  • qualitative feedback from the industry about their concerns and practices as regards to PPOs.

The Working Party will compile a mortality table of impaired lives due to brain and spinal injury following a severe trauma

The data is compiled from the UK medical research database of patient records as entered by GPs. Whilst cause of injury is not recorded we hope that the data will be sufficiently close to motor-related accidents that the mortality is a good match. To the best of our knowledge, this is the first time that such an investigation has been attempted. There is considerable call in the insurance industry for such analysis to help pricing, reserving and capital modelling.

The PPO working party operates within a terms of reference.

Periodical Payment Orders Working Party Outputs:

2021:

2020:

2019:

2018:

2017

2016

2010 - 2015

Chair: Peter Towers
Membership: 23
Established: 2010

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Contact Details

If you want more information about this research working party please contact the Communities Team.

professional.communities@actuaries.org.uk

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Events calendar

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    13 October 2021 - 8 December 2021

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    This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.

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    Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.