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.
News International set to charge for access to websites
News International is set to introduce charges for access to The Times and the Sunday Times newspaper websites in a move which many in the industry have been predicting for some time. Users will be charged one pound a day or two pound a week for access to the two websites and it is almost certain that other websites will follow suit. As a consequence we could see a significant increase in the cost...Read More
Jaguar Land Rover dumps the UK government
Despite the fact the business needs to find in excess of £1 billion by September the Indian owners of Jaguar Land Rover have today dumped the UK government and its offer of "assistance". As we covered yesterday, the UK government had offered assistance in finding additional capital to keep the business afloat in exchange for a seat on the board, day-to-day control of the business and a veto on fu...Read More
UK quantitative easing policy criticised
In a surprise attack by a supposed ally in Europe, Gordon Brown felt the full wrath of German Chancellor Angela Merkel today after she heavily criticised the U.K.'s policy of quantitative easing. Despite the fact that the European Central Bank is also executing such a policy at this moment in time Ms Merkel felt the UK was a valid target for her differing opinion.
While the full ben...
Alistair Darling confirms he has issues with Gordon Brown
The Chancellor of the Exchequer Alistair Darling has today opened old wounds by suggesting that he has issues with Gordon Brown and the way in which the recession is being handled. It appears to be common knowledge that Alistair Darling is one of a group of MPs who has strongly suggested that Gordon Brown apologised to the UK public in his US speech although this appears to have fallen on deaf ear...Read More
UK and Austria in line for possible credit rating downgrades
As the dust starts to settle on the downgrade of Irish national debt by the credit rating agency S&P there are concerns this evening that Britain and Austria could be next on the list. Britain is the only one of the two countries on a negative outlook from S&P and could be in line to lose its valuable AAA rating. The move to reduce the rating on Irish sovereign debt has set a very difficult preced...Read More