Reinsurers offer new solutions to PPO threat

General insurers see mounting long-term liabilites

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Periodical payment orders (PPOs) constitute a growing threat to UK motor and liability insurers. What started as a trickle in 2005 (when only four PPOs were settled) has over the last few years turned into a flood: 89 were settled in 2012 alone.

PPOs are large motor and/or liability claims typically paid out where the claimant suffers a life-changing injury, like brain or spinal damage. Rather than being settled as a lump sum, these claims are paid out as a stream of regular payments for the dur