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.
Rescue mission to Greece could last 2 to 3 weeks
Insiders from the European Union are making it plain to reporters and analysts that the European Union and International Monetary Fund visit to Greece, to appraise the budget and economic situation, could last up to three weeks. This is a body blow for investors in the European Union and worldwide who had hoped that the Greek situation would be sorted in the short-term and the proposed multibillio...Read More
Overseas Car Insurance Is Hard To Follow
A report by Which? magazine has spotted the emergence of an alarming situation with regards to the hiring of cars when you are on business or holidays overseas. It seems as though the vast majority of those involved do not have a clue what cover the insurance offers, with many unaware of a range of excess payments which are activated in the event of an accident. Many people do not even questio...Read More
Will the public sector pay freeze be enough for voters?
As the UK government gets ready to announce a pay freeze for the better paid in the UK public services sector, there is a feeling this is too little too late from a government which has been woefully out of touch with UK voters. At a time when the public sector in the UK has ballooned to an unbelievable size, taking in more and more taxing income each and every year, there is a feeling that this m...Read More
Homeowners warned over Easter DIY mishaps
Homeowners have been advised to check their home insurance policy before undertaking any DIY this Easter weekend or risk ending up out of pocket in the event of a mishap. Home insurance provider Allianz Insurance predicts that this Easter the collective bill for damage caused by DIY accidents could reach as high as £25 million. In the event that they are not comprehensively ensured for such event...Read More
Part of Northern Rock to be sold in 2009
In a move which is effectively "robbing Peter to pay Paul" the UK government is looking at plans to sell off parts of the Northern Rock to raise around £2 billion for the budget coffers. Despite the fact that literally billions upon billions of pounds are still owed by Northern Rock, to the UK taxpayer, the UK government is desperate to raise as much funding as possible in the short to medium ter...Read More