Nick Symes on... Ogden



[UPDATE - 15.07.19]

Ministry of Justice announces revised Ogden Rate of -0.25% with effect from 5th August 2019.

Well, some improvement, but from Insurers perspective, still not where it needs to be.

The rate will be reviewed again within 5 years!



[Blog originally published 14.03.18]


The Ogden Tables set down a framework for calculating damages for serious personal injury claims. As well as future medical care, medical inflation etc it also deals with investment returns achievable over a long period of time for a lump sum payment.

For the last 16 years, this has been 2.5% i.e. a deduction of 2.5% from the lump sum to reflect investment returns achievable from a low risk investment i.e. Government bonds.

A review has recently been undertaken which concluded that since the credit crunch in 2008 investment returns have reduced. Consequently, the Ogden return rate has been amended to -0.75%.

So in other words the view is that investing the lump sum will result in it reducing!!

This came into effect on 20th March 2017 for all existing personal injury claims and all new injury claims.

Insurers will therefore end up paying an additional 3.25% which is estimated to cost the industry £7 Billion* for existing claims and £1.2 Billion** per annum for new claims.

This means that insurance premiums for liability insurance policies where claims are made for personal injury will need to rise. Not only will this have an impact on the cost of motor insurance and Employers Liability, it will also affect Property Owners Liability insurance.

As the cost of each claim is likely to rise, some substantially, our advice is to make sure your limit of indemnity is sufficient to cover the most serious of injuries.

Please call one of our property experts on 0161 834 8877 who can advise you further.


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Tags: Ogden | Ogden Tables | Ogden Rate