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.
Is Gordon Brown really the champion of the middle classes?
Gordon Brown has today reiterated his stance regarding the middle classes of the UK despite only days ago ridiculing David Cameron because of his "privileged background". Indeed Gordon Brown has spoken in detail about his own "privileged background" with many suggesting he is trying to align himself with those in middle England, who effectively won the election for the Labour Party last time. T...Read More
The Madoff fund appears to have run dry
The $50 billion investment fund fraud which has come to light on Wall Street may well end up costing investors more than many had initially thought. The SEC in America has been investigating the fund and it looks as though the business has been running insolvent for a number of years. It would also appear there is little left of the $50 billion invested into the scheme and while $17 billion was ap...Read More
Activist investors get the green light from the FSA
The Financial Services Authority (FSA) has today given the green light for activist investors to work together without the threat of breaking European Union or UK regulations regarding market abuse and acting in concert. The surprise move was announced by the FSA today although there are certain criteria which must be followed to avoid any potential conflict of interests or market abuse claims.
UK consumer debt reaches £56,000 per household
Figures from the National Audit Office revealed that personal debt in the UK has reached a massive £1.5 trillion as the downturn continues to impact upon consumer finances. This figure of £1.5 trillion includes credit cards, mortgages and personal loans and equates to a debt for each UK household of £56,000, 60% higher than the average household income and the highest figure ever. Many debt...Read More
BSkyB in talks regarding Tiscali UK asset purchase
Italian outfit Tiscali is in talks with BSkyB about the possible sale of the group's UK broadband operation which has been on the market for some time. After a very public auction it appears as if BSkyB is the only bidder left around the table and Tiscali is desperate to sell as soon as possible. The UK operation has approaching 2 million broadband customers and the asking price is around about th...Read More