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.
Private medical insurance popularity grows
According to figures from the Association of British Insurers (ABI), the number of people taking out Private Medical Insurance (PMI) has risen year-on-year for the first time in recent years.In 2006, 1,030,000 individuals took out personal PMI policies, up 1.8 per cent from the 1,012,000 personal PMI policies in 2005.The number of businesses taking out corporate PMI has increased even more than t...Read More
Lib Dems slam ministerial car travel
Government ministers and officials travelled almost three million miles by car last year, up by more than a fifth on the period before, according to the Liberal Democrats.The party claims that ministerial travel and chauffeur services cost the taxpayer a "massive" £18 million in 2006.According to a House of Commons written reply, vehicles in the Car and Dispatch Agency fleet travelled more than 2...Read More
Do you monitor financial interest rates?
While the vast majority of the UK population will have a loan, overdraft or mortgage (or possibly all of them) how many of us actually monitor the interest rate applicable to a particular debt?
The truth is that many of us have no idea what interest rate we are being charged at the moment on a variety of different loan vehicles but we just continue to make the repayments as a matter...
Wonga will write off 330,000 loans after FCA investigation
02/10/2014 The UK’s biggest pay day lender, Wonga, have today announced they will write off 300,000 customer loans, totalling in £220 million, after the financial conduct authority (FCA) discovered the company was not doing enough to assess customers ability to meet their repayments. Approximately 330,000 customers who are in arrears of 30 days plus, as at 2 October 2014, will have their de...Read More
A good credit rating
Those who approach the market for a mortgage, loan or credit card know the importance of a good credit score. Over the past 12 months, the approval of new mortgages has decreased by 40 percent. Trends show lenders are now choosing to minimise risk by taking in high-tier individuals with the best credit ratings. For people looking to borrow, the first step is ordering a credit report from...Read More