Zurich calls for Ogden rate reform, new minister appointment

Leading insurer writes to political parties and unveils manifesto ahead of UK general election in June

Zurich calls for Ogden rate reform, new minister appointment

Insurance News

By Louie Bacani

Zurich Insurance has set out a seven-point manifesto, which includes calls for a fairer framework for setting the personal injury discount rate and the appointment of a new “savings minister.”
Ahead of the UK general election in June, Zurich wrote to the main political parties and highlighted the additional costs for insurance customers following the Ogden rate cut and the latest increase in Insurance Premium Tax (IPT).
“Urgent measures are needed to create a fairer framework for setting the discount rate, which is having a significant negative impact on insurance costs for customers at a time when they can least afford it,” said Zurich UK chief executive Tulsi Naidu.

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“We encourage the main political parties to carry over the work to create a more appropriate framework for setting the discount rate which is fair for claimants, tax payers and premium payers and we want to see a commitment to legislation in the next Parliament.”
Naidu said the government must reintroduce the Prisons and Courts Bill since the proposed reforms it contained were a “welcome step” in tackling fraudulent whiplash claims.
Zurich also called for the appointment of a new savings minister who could ensure a “more coherent” approach to pension policy and help rebuild consumer confidence and trust in long-term savings.
“A savings minister would secure political representation for savers at the very top of government, coordinate savings policy across all departments and champion the needs of different consumer groups,” Naidu said.

The insurer also stressed the importance of income protection cover. It urged political parties to commit in their manifestos to working collaboratively with employers and insurers to tackle long-term sickness in improving the take-up of group income protection.

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