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.
Will National Express pay the price for rail franchise debacle
After handing back the East Coast rail franchise it looks as though National Express's days of independence could be numbered. It has been revealed that a wealthy Spanish family and private equity group CVC capital partners have teamed up to make an offer for the group which is believed to be in the region of £500 million. However, the value of National Express on the stock market is currently ar...Read More
Barclays bank succumbs to public fury
It is rumoured that Barclays bank will introduce a bonus deferral system which will see top management defer up to 100% of their annual bonus for the next three years, middle ranking staff defer up to 75% of their bonus for next three years and low ranking staff defer up to 50% of their bonus for the next three years. It would seem that Barclays bank has succumbed to the public fury regarding bank...Read More
Bank of England pours scorn on early recovery hopes
The Bank of England has today fuelled speculation that the UK economy is still some way off a solid recovery with expectations that the quantitative easing program could be extended beyond the £200 billion fund confirmed so far. This would indicate that maybe the Bank of England is aware of economic information which is not yet in the public domain? Only a few days ago the Governor of the Bank...Read More
Level of energy complaints triple
08/04/2014 The number of complaints to energy companies has tripled in the last year according to the Ombudsman, whilst the biggest concern was billing. There were 10,638 complaints in the first quarter of 2014, three times as many as during the same period last year.
Customer frustration and dissatisfaction
The main area of concern was billing, followed by customer service...Read More
Extra £1m premium bond prize announced
29/05/2014 A second monthly premium bond prize of £1m will be launched by National Savings and Investments (NS&I) this August. The announcement means that two people will win a tax-free lump sum prize of £1m each month, instead of the current single winner. Additionally, as of the 1st of June 2014, premium bond holders will be permitted to own a maximum of £40,000, an increase of £10,...Read More