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.
UK car production down 31.5% in August
Despite the fact that the UK car industry has been performing very well over the last three months, it was today confirmed that the production of new cars in the UK fell by 31.5% in August. This figure has shocked many in the industry although when you consider that August is historically one of the quieter months in the new car calendar, it is maybe not as bad as it looks at first glance. However...Read More
Royal Bank of Scotland announces changes to final salary pension scheme
The Royal Bank of Scotland has today announced significant changes to the company's final salary pension scheme which will see benefits reduced in the future. This comes at a time when the UK government appears to be placing more pressure upon UK banks to control their cost bases and give taxpayer's better value for money, where taxpayer's money has been used to acquire shares. New chief executive...Read More
British Airways avoids Christmas strike
While British Airways is said to be in talks with the Unite union about averting the proposed 12 day strike action over Christmas, the company has won a reprieve in the courts forcing the union to hold another ballot before being able to press ahead with the strike action. However, such a ballot cannot be held until the end of January at the earliest therefore the company has managed to avert the...Read More
Public sector services under threat
As the UK budget continues to spiral out of control there were some heated exchanges in the House of Commons yesterday between Gordon Brown and David Cameron. The Tory leader was caught out somewhat when his shadow cabinet minister suggested that the Tory government would implement 10% public sector budget cuts across the board. This played right into the hands of Gordon Brown who is now looking t...Read More
When Will Competition Return To The Mortgage Market?
The UK mortgage market has been something of a graveyard for many of the major players over the last 12 months with finance hard to come by and reliable customers even harder to find. So when will we see a return of good old fashioned competition in the mortgage sector? When will we be able to signup knowing that we have a competitive rate AND competitive terms and conditions?