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.
CBI agrees UK recession is coming to an end
The Confederation of British Industry (CBI) has today released a statement confirming its belief that the UK recession will end in the fourth quarter of 2009. This will bring to a close the most damaging economic downturn in the UK since the 1930s and hopefully allow some companies to draw a line under recent problems and begin to look to the future. However, the CBI, like so many other busines...Read More
How did the situation in the UK get so bad?
While we hear about the doom and gloom surrounding the worldwide economy many people at home are wondering just how a once prosperous UK economy has fallen so sharply leaving many companies and people destitute. The once proud housing market is literally on its knees, the stock market is more volatile than ever before and the ruling Labour Party appear hellbent on fighting amongst themselves.
Insurer withdraws cover for JJB
News that a credit insurer has withdrawn cover for JJB has sent the shares into something of a tailspin after a disastrous couple of weeks for the UK giant. The move could have a serious affect on JJB's ability to trade normally as the cover in question relates to suppliers and ensures that suppliers will get paid in the event that the customer was to endure financial troubles. So what next for...Read More
Will Hershey have to bid £8.60 a share for Cadbury?
The twists and turns regarding the Cadbury takeover continue with speculation in the market today that Hershey is on the verge of launching its own independent bid for the operation. While analysts are sceptical as to whether the company could match the financial power of Kraft Foods, assuming Kraft Foods is determined to acquire Cadbury, some analysts expect a bid in excess of £8 a share and pos...Read More
Is the Bank of England scared of inflation?
Fears are growing regarding the potential threat of inflation with the Bank of England letting it be known that inflation could be a problem in 2010 and we could see a surprise increase in UK base rates. This comes despite the release of minutes from the April MPC meeting at which all members voted in favour of retaining base rates at their current low although concerns were voiced regarding infla...Read More