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.
Credit card fraud hits record levels
Fraud on credit and debit cards soared to a record high last year, figures from payments association Apacs show. According to Apacs there was a 25 per cent rise in fraud in 2007, bringing collective losses to £535 million. This is the first time that fraud has increased since 2004 when chip and pin technology was introduced to provide greater security. Apacs said the increase last year was fuelle...Read More
Remortgage Applications Rise Dramatically
Applications for remortgage loans have rocketed in the last year, new figures have revealed. Data compiled by the Mortgage Advice Bureau (MAB) show that the number of remortgage loans taken out over the past year has increased by a whopping 27 per cent. Interestingly, and maybe not surprisingly considering the credit crunch, home buyer mortgages have fallen by almost exactly the same volume dur...Read More
Are you making best use of tax efficient investment vehicles?
In everyday life the government seem intent on taking as much tax as possible with many taxpayers questioning what they actually receive in return. However, there are a number of long-term tax efficient savings vehicles which many people seem to ignore at their peril and their long-term cost. But why would a government incentivise the UK public to save for their future?
In simple te...
Just when the economy showed signs of recovery........
There can be few Prime Ministers who have experienced the difficult situations and circumstances which have arisen under Gordon Brown's tenure over the last 12 months. We have seen the credit crunch, the collapse in UK banking system, the recession, infighting in government, the MP's expenses scandal and now we have the outbreak of swine flu which could turn out to be a worldwide pandemic.
FSA issued new rules on sale and rent back deals
The FSA (Financial Services Authority) has today issued a number of new rules which will form a key part of the future sale and rent back market for UK homeowners. This is an area of the market which has attracted some of the more undesirable salespeople in the financial world and there have been many instances of pressure placed upon homeowners to take unrealistically low prices for their propert...Read More