Fraud costs insurers '£4m a day'
Insurance fraud costs UK insurers some £4 million a day, new research has indicated.A survey by the Association of British Insurers (ABI) found that one in ten adults had admitted to filing a fraudulent insurance claim.The trade body said that their dishonesty was adding an average of almost £40 to the annual premiums of other policyholders and costing the industry £1.6 billion a year.Policyholders were most likely to lie about insurance claims related to their properties, the ABI survey of almost 7,000 people found.About half the total cost of dishonest claims each year relate to home contents and building insurance, the association confirmed.Meanwhile opportunistic fraud, where a claimant increases the true price of an item that has been damaged, is estimated to cost insurers more than £800 million annually.Commenting on the research, ABI's director of general insurance and health, Nick Starling, said: "Honest customers should not have to pay for the cheats."These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud. This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves," he added, stressing that the recently established Insurance Fraud Bureau (IFB) was already having a "significant impact" on tackling organised insurance fraud.The IFB, launched by the insurance industry in July 2006, welcomed the government's response to the Fraud Review in March, but warned that greater police resources were needed on a national scale to maximise its own impact through a collaboration with law enforcement authorities.
Has the ongoing recession pushed the UK closer to Europe?
In a move which is sure to court controversy in the UK, a number of EU senior ministers have been quoted as suggesting the UK is ready to adopt the euro. It seems as though ministers in Europe are using the ongoing recession to try and hammer away at the UK door which has been firmly closed for many years. There are concerns that the UK government may well be susceptible to a new welcome into the...Read More
Google enters the UK property market
Search engine giant Google has today confirmed that residential property listings will be added to its Google maps service. The company claims that "hundreds of thousands" of homes are already being advertised for sale or rent on the Google maps service which is proving to be one of the more popular initiatives of late. In a rather clever way, which does not alienate any area of the market, Goo...Read More
Are bonuses a vital part of the UK banking sector?
After Stephen Hester commented on the fact that Royal Bank of Scotland stands to lose some of the top talent in the UK financial sector because of pay restrictions and bonus issues, many are now asking whether bonuses are indeed a vital element of the UK banking sector. While the UK government would have you believe that all bankers in the UK are "the devil in disguise" the truth is that the UK...Read More
Mortgages approvals fall in July, according to BBA
The British Bankers Association has revealed that the number of mortgage approvals fell in July from the previous month, as the availability of cheap lending for new homes was reduced. In total, there were 42,800 mortgage approvals in July, while June figures stood at 43,200. Despite this though, volumes were still up by 12 per cent in July, when compared to the same month last year. The B...Read More
Paul Myners calls for simple structure to UK banks
City Minister Paul Myners has today called for the UK banking industry to be simplified and some of the more complex arrangements in the UK banking sector to be spun off from traditional banks. It is no secret that over the last few decades the financial industry has become more and more complicated with new tools and new investment ideas hitting the headlines on a regular basis. As a consequence,...Read More