Government Actuarys Department
The Personal Injury Jury Discount Rate (PIDR) in the Isle of Man has been increased from -0.25% to +1.00% p.a.
The Isle of Mans Treasury Department was supported by the Government Actuarys Department (GAD) (PDF, 688.78KB) to inform its review.
This revealed a significant change to market conditions since GADs previous advice provided in 2019 and 2020.
Damages payments
The PIDR is a percentage figure used to calculate damages payments to people who have undergone serious and long-term injuries where the damages are paid as a lump sum.
Where a claim for future losses is settled as a single cash amount, the assessment of future losses and costs is converted into a lump sum allowing for the:
- period over which losses and costs are expected to be met
- assumed investment return that a claimant should expect to earn on the lump sum award
This assumed investment return is the personal injury discount rate.
Tynwald, Isle of Man parliament building. Credit: Shutterstock
Other factors
Global economic conditions are an important factor in the rate that is set and was the focus of GADs latest review for the Isle of Man.
Our support on reviewing the PIDR can extend to research and analysis beyond economic forecasting, ensuring that the rate set reflects the legislation, industry and demographic factors of the jurisdiction in question.
Other administrations
GAD is also providing advice to support the review of the PIDR in England and Wales and the devolved administrations of Scotland and Northern Ireland.
GAD Actuarial Director Stephen Humphrey spoke about the PIDR at the Association of British Insurers Civil Justice Reform The Road Ahead event earlier this month.
Attendees considered what future developments could be, including the next PIDR review in England and Wales in 2024.
Contact us
We would be pleased to talk with other jurisdictions that may be considering their own personal injury discount rates: