Wednesday, July 22nd, 2020
The 8th Edition of the Odgen Tables have been published and are applicable from 17 July 2020. Compass Chambers’ Andrew Smith QC was part of the Ogden 8 Working Group and assisted the Government Actuary’s Department in configuring and providing the explanatory notes. Downloadable versions of the 8th Edition’s explanatory notes and tables can be accessed here.
It has been nearly a decade since the last iteration of the actuarial tables, and this latest version sees a number of important changes. The new edition applies updated mortality data published by the ONS in October 2019 and makes allowance for changes in and different applications of the Discount Rate throughout the UK. The ONS mortality rate shows that male and female life expectancy has been increasing at a slower rate than predicted. The overall result of the updated mortality data is a general reduction in multipliers, depending on the age and gender of the claimant.
There are now 36, rather than 28, Tables which include additional tables for loss of earnings to age 68, reflecting the state retirement age. There has been a reworking of Tables A to D in relation to educational attainment, a revised definition of “disability” and further guidance provided in relation to the quantification of fatal claims.
The new edition does not address the current COVID-19 pandemic and its effect on future mortality (if any); however, the position may have to be reviewed once the implications of the pandemic become clearer, specifically to consider whether the mortality rates remain “fit for purpose”.
Practitioners may wish to consider reviewing valuations, tenders and pursuer’s offers in light of the changes made in Ogden 8 and Members of Compass will be happy to assist solicitors and insurers in that regard.
Steve Love QC and Grant Markie will be producing a detailed article looking at the changes, their effect and providing worked examples.
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