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From the Keoghs blog:

The great discount rate debate

With the current focus of attention on the Jackson reforms it is easily forgotten that there are still some potentially much bigger challenges facing the industry in 2012. Amongst these is the cost of catastrophic injury claims which, whilst low in number, contribute a disproportionate amount to overall claims costs.

The average cost of such claims in the UK has risen by some 400% over the past 15 years. This is by far the highest increase of any country in Europe, and significantly in excess of inflation indices such as CPI, RPI and Average Earnings over the same period......

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