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The government intends to set the rate with reference to ‘low risk’ rather than ‘very low risk’ investments, meaning a larger percentage can be deducted on the assumption of higher interest rates. The rate will be reviewed every three years with an independent expert panel chaired by the government actuary advising the lord chancellor on the rate.


This is the only part I agree with. The discount rate needs to be reviewed on a regular basis by an independent panel of experts. The panel should not contain anyone from insurers or any government ministers as that will just be the same as having the ABI setting the rate. It needs to be a panel of Judges, Actuaries and independent financial advisors or some other financial expert that deals with investments .