Workshop D3: Periodic Payment Orders and the uncertainty around them – update from the IFoA PPO Working Party
Periodic payment orders (PPOs) are a way of compensating an injured insured for any resulting reduction in their quality of life and covering the cost of care. They’re an alternative to lump sum settlements. While the concept primarily applies in the UK, the aim of this talk is to impart knowledge about this kind of claim settlement, its peculiarities, and the uncertainties it brings.
We will cover the dependency of PPO propensity on Ogden rates used for valuing lump sum settlements, and talk about the Annual Survey of Hours and Earnings, a key assumption in modelling PPOs. Using the annual survey results of the IFoA’s PPO Working Party, we will bring in trends in the way PPOs are awarded and valued.
We will draw parallels to how injury claims are settled in the Indian market and examine if there is a need to evaluate the feasibility of having PPOs here, discussing the pros and cons.
This will be a technical knowledge-sharing session and will be hybrid, with one working party member attending the conference in person and another online.
Speakers: Tvisha Gupta, RSA, Justin Thomas, Acorn Insurance, and Chris Francis, WTW
