At the end of last year the Office for National Statistics published its latest population projections. Amongst these figures was the projected life expectancy. It is still assumed that life expectancy will increase but less quickly than the ONS projected in 2016.
Life expectancy is one factor which is allowed for in the calculation of the multipliers used in the Ogden Tables. Ogden Tables are commonly used to calculate the current capital value of future losses. A slowdown in life expectancy impacts on the value of claims.
The Ogden Tables have not yet been updated to reflect this change but we understand that the working party may be considering the impact of the latest ONS figures. In the meantime, parties to a claim, particularly defendants, involving future losses may want to think about whether claims valued on the current multipliers may over compensate a claimant and if there is any merit in delaying settlement of high value claims pending updated tables.
