Reinsurers brace for Ogden impact

The largest UK motor reinsurance broker Capsicum Re has warned
that reinsurers will feel the major impact of spiralling personal
injury compensation costs after the UK government unexpectedly
pushed the discount rate into negative territory.
However, the broker also predicted that the change in the Ogden
rate to minus 0.75 percent from 2.50 percent could encourage
reinsurers back into the auto market.
Yesterday's cut was far steeper than the 1.0 to 1.5 percent
rate reduction many industry protag