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.
RBS and NatWest fined for mortgage advice failings
The Royal Bank of Scotland and NatWest are facing a large fine, after the City regulator, the Financial Conduct Authority, conducted a review that revealed “serious failings” in the advice being administered to mortgage customers. The fine, which is just under £14.5m, will be issued to RBS after it was revealed that only two out of 164 mortgage sales analysed met the required standards. T...Read More
Pension gap continues to grow between private and public sector
The Office for National Statistics has revealed an alarming expansion in the gap between private sector and public sector pensions which is set to continue for some time to come. It was revealed that the number of active members of private sector pension schemes has fallen by 100,000 since 2008 and now stands at 2.6 million. During the same period the number of members of public sector pension sch...Read More
Marc Bolland takes his seat at Marks & Spencer
Marc Bolland, the new chief executive of Marks & Spencer, is 24 hours into his new role and one day into an eight week induction course. This is the man who has been given the opportunity to relight the fire of Marks & Spencer after a difficult period in the history of this ever popular UK retailer. So what can we expect from the tenure of the new chief executive? Marc Bolland, formerly of Morr...Read More
BRC asks UK government to increase bank lending
The British Retail Consortium (BRC) has today called on the UK government to place more pressure on the UK banking system to increase lending and also backdate the recently announced trade credit insurance scheme. The move comes after a survey released by the BRC confirmed that one third of small and medium-sized businesses and around one fifth of larger retailers have seen their banking facilitie...Read More
Why is the UK economy struggling so much?
Today's UK trade figures took stock markets and analysts by surprise with an increase in the trade deficit at a time when many felt the UK was back on track and moving towards a growth period. While there are a number of suggestions as to why the UK trade gap widened in January ultimately it seems that a significant drop-off in exports has hit the UK economy very hard. One of the main issues wh...Read More