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.
GM Europe set to approach UK government for state aid
General Motors Europe is set to approach the UK authorities for £3 billion in state aid after warning that funds are running desperately low and the company expects to run out of cash towards the end of March. After the UK government refused to directly support the UK car manufacturing and car retail sectors this will be a serious test of the government's resolve and could have massive consequenc...Read More
Were Chinese state employees involved in cyber attacks on Google?
Security experts in China are currently unearthing evidence regarding various cyber attacks on Google and a number of prominent business websites in the country. There are allegations, as yet unfounded, and that the Chinese state authorities may well have been involved in the various cyber attacks and this threatens to drive a wedge between the Chinese authorities and the US authorities. As we...Read More
Insurance fraud hits new highs in the UK
As the recession continues to bite hard at the everyday population of the UK many insurers have been reporting significant increases in insurance fraud. The latest to join the band of insurance companies suffering from "fictitious claims" is Admiral Group which believes that frauds in the region of £20 million have been carried out by its customers over the last year. In truth the real figure wil...Read More
FSA orders banks to review PPI complaints
While payment protection insurance (PPI) will soon be a thing of the past, the Financial Services Authority (FSA) has today ordered UK banks to reopen complaints which were rejected in the past. There is concern that a number of UK banks may well have operated under substandard complaint procedures with regards to PPI and those who have been refused payouts in the past may well be in line for a mo...Read More
Government spending cuts hit the high street
Today's figures from the Office for National Statistics show that retail sales in the UK have fallen by 0.5% in August which is the first reduction in over six months. The sale of food, fuel, clothes and household goods were all down with non-food stores also showing a significant drop of 0.7% in overall sales. The overall decline in food stores sales was 0.5% over the period and the Office for Na...Read More