Insurance fraud hits low-income consumers
The Financial Services Authority (FSA) has recently issued a number of fines in relation to insurance fraud which has left many people underinsured or in some cases uninsured despite paying their premiums. However, despite the fact that many consumers have forwarded this their premiums in good faith and assumed that the relevant cover has been taken out many will find the shocking reality when they try to claim in the future. So what can consumers do to protect themselves?
If you take out an insurance policy with any third party you should demand to see the relevant paperwork which should confirm the date when the cover began, the premiums and details of the cover offered by the insurance company. Alarm bells should start ringing if you pay your premiums but do not see sight of the correct paperwork within an "appropriate" space of time.
Even though the FSA has undergone a number of investigations into the insurance industry and uncovered a number of frauds there are many more going on under the surface. Consumers, the authorities and the insurance industry as a whole need to be more alert and more aware of the potential problems and take the relevant action as soon as possible.
What happens if AIG goes under?
AIG is one of the largest insurance companies in the world with a workforce which is four times that of Lehman Brothers. The company literally has a hand in every major insurance market around the world and if it were to cease trading then customers would need to look elsewhere for their insurance cover - not to mention Manchester United having to replace their £56 million sponsorship deal!
Lloyds bank agrees to stop PPI sales
Lloyds bank has today agreed to withdraw PPI, payment protection insurance, from the list of services provided by the group. Earlier this year we saw the regulators suggesting that the way in which PPI is sold to the general public should change in the future. A cooling off period and a more detailed analysis of the total cost of PPI, together with discussions regarding the fact that many consumer...Read More
Aviva setback as further legal challenges materialise
Insurance giant Aviva has received a setback in its three-year battle to pay out orphan funds to shareholders, policyholders and the company itself. The original £1 billion offer from a £4.2 billion fund has since been reduced to £500 million after the fund in question fell in value to just over £1 billion. However, last week saw what many believe was the final ruling in this ongoing saga but...Read More
UK insurance rates are set to soar in coming years
While the banking industry is under serious pressure from the government, the insurance sector is sure to come under close scrutiny over the next couple of years. It is no surprise that insurance companies have seen a major reduction in their incomes in light of the economic slowdown and stock market turmoil, and this reduced income will need to be covered by increased premiums.
Car insurance set to rocket in 2009
With news that car insurance premiums rose by 11% in 2008 the AA has put drivers on red alert for a similar rise in 2009. There would appear to be a number of issues which have come into play over the last 12 months and which could continue for some time to come. The average annual premium for comprehensive car insurance increased by 1.3% in the first three months of 2009 and now stands at just ov...Read More