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.
Talking on phone while driving could 'invalidate insurance'
Motorists who are involved in an accident because they are using their mobile phone while driving may invalidate their insurance claims for car repair or replacement, the Association of British Insurers (ABI) has warned. A spokesperson for the organisation said that although damage to other people's cars or property and to other people will always be covered by motor insurance, damage to the drive...Read More
AIG bailout gives some relief to markets
News that insurance giant AIG has been bailed out by the US authorities at the final hour has given stock markets around the world a little bit of breathing space in the short term. The move, which many see as highly unusual, saw the US government affectively take control of the giant by injecting $85 billion into the company in return for a stake of nearly 80%. The two year loan allows the grou...Read More
Barclays investors fear for the future
It has been revealed that a number of banking research analysts have expressed concern at the additional cost which Barclays bank has taken on to accommodate the Middle East multibillion pound refinancing. Initially there had been some cheer that the bank had organised the refinancing with such strong investment partners but the disclosure of the cost of raising the finance compared to the UK gove...Read More
What is feeding the recovery in the UK banking sector?
Over the last few days we have seen more positive news from the UK banking sector than we have seen over the last three years. Lloyds Bank and Royal Bank of Scotland appear to be moving towards profitability and other banks in the UK are reporting near record profits. So what exactly is feeding this banking frenzy in the UK? A quick look at savings rates in the UK will show that the difference...Read More
Goldfish credit card benefits reduced
When Barclaycard acquired Goldfish back in 2008 the Goldfish credit card offered one of the most generous perk schemes on the market at the time. However, Barclaycard has recently adjusted the perks attached to the Goldfish credit card and customers will receive just 0.3% cash back as opposed to 1% in days gone by. Despite rumours in the marketplace that Barclaycard may well be looking to "kill of...Read More