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.
Sir Thomas Legg had concerns about MPs expenses some time
The ex-civil servant Sir Thomas Legg, currently in charge of a review of MPs expenses, was it has been revealed a member of the committee back in 2004 which was created to look at MPs expenses. It has been confirmed that Sir Thomas Legg and other members of the committee had significant concerns about the expenses system as long as five years ago.
This may well explain why Sir Thoma...
Could the World Cup give UK consumers a boost?
As we approach the South Africa 2010 World Cup there is hope that a good showing from the England team will give UK consumers, UK businesses and the UK economy a welcome boost. Historically we have seen boom time's in economies in World Cup years and there are hopes we will see a repeat this year as the UK economy desperately needs some inspiration. Pubs and clubs around the UK are already lick...Read More
Russian authorities ban export of grain
The Russian authorities have been forced into introducing a ban on the export of grain after severe droughts in the region effectively wiped out much of the supply available in Russia. There are now concerns that the ban from the Russian government will impact on the world wide grain market as immediately after the announcement there was a 7% increase in the price of the commodity. The Russian...Read More
FCA Quizzed on Post-RDR Advice Gap
The FCA is facing new questions about the availability of financial advice to the regular consumer, after an MP enquired about what the regulator plans to do to plug the advice gap. Questions were asked during a Treasury select committee related to the Heath Report, as well as the increasing number of people who say that they do not have access to financial advice since the RDR. Within the m...Read More
Is the UK credit card market anti-competitive?
As we continue to see the credit card market heavily criticised in the financial press for maintaining high rates as base rates continue to fall there is a concern that the historic competitive element of the UK credit card market has reduced of late. We have seen a number of major UK credit card companies either withdraw from the market completely or run down their operations and reduce the numbe...Read More