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.
Lord Mandelson plays an ace for Vauxhall workers
Lord Mandelson has today claimed victory in the fight to secure up to 5000 jobs at Vauxhall's UK plants, following the ongoing takeover of GM Europe by Magna. It would appear that a potential £400 million sweetener, which the UK government will inject into the German authorities £4 billion state funding, may have done the trick.
Only yesterday we saw Magna suggesting that a new v...
What happens if your final salary pension scheme closes?
While 20 years ago a final salary pension scheme was very much the norm in the UK business arena times have changed and the outlook for the pensions industry is very very different. It has been reported today that one in four final salary pension schemes will close their doors during 2009 leaving many employees struggling to understand the implications and the potential loss of protection going fo...Read More
Northern Rock valuer to receive £4.5 million!
As the government reveals the appointment of an independent valuation expert to arrive at a 'price' for Northern Rock it has been revealed that Andrew Caldwell, the man in question, will be paid a one off fee of £4.5 million no matter how long it takes him to arrive at the figure.
This is all part of the ongoing dispute between shareholders of Northern Rock and the government with...
Why dont the authorities reduce our taxes to refloat the economy?
As we hear news of multi billion pound bailouts and more money where that came from, more and more UK tax payers are starting to wonder why the authorities did not just reduce our tax burden to refloat the economy. Surely less taxes means more money in the consumers pocket and more money to spend on the UK economy?
The truth is that this situation we are in is unique and is not dow...
Is BSkyB Suffering From The Downturn?
While Rupert Murdoch's satellite baby has not always been the darling of the City there is no doubting the management's ability to hit targets on the spot, something which has enhanced their reputation over the years. The move into UK sport and football in particular was a piece of marketing genius and opened many new doors for the group. However, it seems as though even the mighty Sky may be su...Read More