Insurance fraud peaks at 2300 claims a week
The Association of British Insurers has issued a damning report on the UK insurance arena with confirmation that over 2300 fraudulent insurance claims are being discovered each and every week. It is estimated that these claims account for over £800 million a year which is then passed on to UK consumers who are left yet again to foot the bill. So why are insurance fraud claims rising?
While there's no doubt that insurance fraud has been ongoing for ever and a day in the UK, even though monitoring systems have been approved, it is the onset of the recession which has brought home just how difficult the financial situation is in the UK. As a consequence, more and more people are now willing to take the chance that they could be prosecuted for fraudulent insurance claims in the knowledge that many insurance companies will look to avoid expensive legal fees.
However, that is not to say that insurance companies will sit by and let insurance fraudsters rule the roost because this would encourage more people to step forward with "borderline" insurance claims in the future. Unfortunately, in the short term it will yet again be law-abiding citizens in the UK who are left to foot the bill for an ever-increasing problem.
Car insurance fees hit £333m
Britons are paying out huge sums in fees to car insurance providers every year to make amendments to their policies, it has been revealed. The fees are charged by providers when drivers fail to notify them of changes which could invalidate their policies. These include a change of address or name or improvements to vehicles. Price comparison site uSwitch.com calculates that some £333 million was...Read More
Travel insurance claims rise following baggage crisis
Travel insurers are reeling the face of a massive rise in claims in the wake of the British Airways baggage crisis. Norwich Union has reported a 40 per cent increase in the number of claims for missing baggage in the first half of the year and InsureandGo saw an enormous 85 per cent rise in the same period. Airlines and airport operators have come under increasing criticism over lost and delayed b...Read More
Identity theft, the threat is real and here!
It is becoming more and more apparent that criminal gangs are targeting the UK and identity theft is becoming more and more of an issue in both the consumer and business markets. We recently saw tens of thousands of Hotmail accounts farmed using bogus websites, call centres infiltrated by criminal gangs and the traditional skimming off credit cards continues to increase. Are you taking sufficient...Read More
Matalan founder looking to refinance the company
John Hargreaves, the founder of discount clothing store Matalan, is rumoured to be looking at a potential refinancing of the company which could see him pocket a £250 million special dividend. The company has been for sale for some time although potential buyers refused to match the £1.5 billion price tag and the sale was pulled some weeks ago. However it is believed that the company is looking...Read More
Is this the end of payment protection insurance?
The FSA has today made a historic move by suggesting that UK banks and financial companies withdraw payment protection insurance for loans and credit cards. This brings to an end a very volatile period in the financial sector in which a number of its mis-selling scandals, involving payment protection insurance, were investigated and the original complaints on the whole were upheld.