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.
Uninsured homeowners risk 'a huge blow' to their finances
Homeowners have been urged to ensure they have adequate home insurance cover, in the wake of a study indicating that storm-related insurance claims are set to increase by over a third in coming years. The German study predicted that should Britain continue to suffer from the high winds and heavy downpours seen last summer, storm related losses are set to increase by 37 per cent. Last year, the tot...Read More
Inflation falls to 1.5%
19/06/2014 Inflation fell to 1.5% in May 2014 in comparison with 1.8% the previous month; making it the sixth consecutive month where the Consumer Price Index (CPI) was recorded below the Bank of England’s target rate of 2%. The Office for National Statistics (ONS) said that the key drivers of the reduced rate of inflation included falling flight costs as well as a steep reduction in the c...Read More
Lloyds bank set for rebranding
As part of the deal with the European Commission, in relation to the significant taxpayer bailout funding, it has been revealed that Lloyds bank will be ditching the TSB name and rebranding its Lloyds TSB businesses as simply Lloyds Bank. Despite the fact that TSB is one of the best known names in the UK bank industry this is the price the company has had to pay to guarantee its future. The tak...Read More
Equitable Life sufferers to receive compensation
The government has finally come clean with regards to the shocking saga of the collapse of Equitable Life. Many thousands of UK investors lost substantial amounts of money when the former insurance company collapsed after a bid to reduce its mortgage guarantee liabilities. The announcement of a compensation scheme administered by the government comes with an apology from Treasury Minister Yvette C...Read More
Unite union admits that British Airways action is probably over the top
In a surprise development regarding the planned 12 day Christmas strike by British Airways cabin staff, Derek Simpson, the boss of the Unite union, has admitted that the action is "probably over the top". After Gordon Brown entered the fray and pleaded with both parties to negotiate an agreement, the revelation that even some within the union believed the 12 day action is too much does in many way...Read More