Lord Bellamy, KC, has recently issued a 'call for evidence' from stakeholders to aid the efforts of an expert panel. What insights can we anticipate from this initiative?
By way of ministerial statement made in the House of Lords on 16 January 2024, Lord Bellamy, KC, announced the start of a call for evidence (CFE) from stakeholders to support the work of an expert panel set up to advise the Lord Chancellor ahead of any new rate being set.
The call for evidence
The CFE lasts for a period of 12 weeks closing on 9 April 2024. It seeks to assist the expert panel in providing evidence on a range of relevant topics to include but not limited to:
- Claimant investment experience — strategies and the factors influencing variations and their experience
of how they manage risk over time. - Expenses and tax payable by claimants on their investments.
- Changes since the 2018 call for evidence including how they impact on the assumptions adopted in setting the PIDR in 2019.
- Impact and practicalities of adopting a dual/multiple PIDR driven by duration of award or by heads of loss.
- The context around which lump sum payments are awarded including the factors which influence the award of a lump sum rather than a Periodical Payment Order (PPO).
The responses will be considered and used to inform the work of the expert panel which comprises members with actuarial and investment experience, together with an economist and an expert in consumer matters relating to investment. This panel will be consulted by the Lord Chancellor as part of the PIDR review. The CFE responses will also be shared with HM Treasury officials.
Timeline and statutory framework
The Civil Liability Act (2018) requires future reviews of the PIDR (currently set at minus 0.25%) to be undertaken by the Lord Chancellor following consultation with HM Treasury and an “expert panel”. The review must be commenced by 15 July 2024.
This announcement and the earlier convening of the expert panel follows its initial stakeholder consultation in 2023.
The Government’s pro-active approach suggests that the Lord Chancellor remains on track to announce any new or dual rate on or shortly after 15 July 2024. We will keep you informed of progress.
For more information on the call for evidence, contact our insurance solicitors.
