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.
Gordon Brown's Big Give-Away we will all pay for
He stepped up to the centre stage, he smiled for cameras and then Gordon Brown attempted to blow away all the problems which he has encountered over the last 12 months, but he forgot one thing. He forgot to tell the consumer who would be paying for the £1 billion giveaway, he forgot the basic rules of economics.
Mr Brown told a packed press conference that over £910 million pound...
UK government is looking at £20 billion of loan guarantees
As Gordon Brown digs deeper and deeper to try and refloat the UK economy it has been revealed that this Wednesday should see a £20 billion small business loan guarantee system announced to the public. There have been a number of hints by the government over the last few weeks regarding such a scheme although the Conservative party believe that a figure of up to £50 billion is more useful in the...Read More
BP shares hit 14 year low
Shares in BP fell to a 14 year low yesterday amid concerns the company may well have to go cap in hand to shareholders for additional funding. There is also speculation that if BP was forced into the money markets to raise funds then the company would likely pay a premium over and above the average interest rates at the moment. So when will this nightmare end? When you consider the damage to no...Read More
Unemployment rises to 1.82 million
Confirmation that the rate of unemployment in the UK is approaching 2 million will be a further reality check to those who assume the economy will bounce back in the short to medium term. So far the unemployment figures have been nominated by the low paid workforce but there are signs that problems are growing in the middle-class of the working public.
If the middle classes are stru...
Government cracks down on sickness benefit
The UK government has recently introduced a new test for sickness benefit claims which has led to an average 66% of new claims being ejected. The rejection figure is as high as 90% in some areas of the country and prompts the question, why is the new system so different from the old system which has seen 2.6 million people in receipt of long-term sickness benefit?
The benefit system...