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.
House Prices Forecast To Rise By 30% Over Next 4 Years
In the middle of the doom and gloom of a major recession it can be very easy to bandy around some headline grabbing numbers and pull in interest from the property sector. Whether the forecast 30% bounce in house prices between now and 2012 actually materialise is a different matter but the Centre for Economics and Business Research (CEBR) seem to think this is a strong possibility.
Royal Bank of Scotland caught between a rock and a hard place
The Royal Bank of Scotland is this evening looking at the possible sale of its prized insurance unit which has been one of the best performers over the last few years. While the timing of a possible sale could not be worse there are concerns that the group needs to increase its capital base for its traditional banking operations with 2009 expected to be as tough if not tougher than 2008.
UK Flood Defence Investment In Disarray
Whether the UK insurance sector knew of the slow pace with which government investment in flood defences was progressing, or insurance companies were trying to give the authorities a wake up call it seems promises of major investment in flood defences are at least 2 years away, as they suggested. The insurance sector has already stated that many areas of the UK will be without flood insurance in...Read More
Government looking at raising national insurance
The UK government is rumoured to be looking at a potential rise in national insurance contributions to fund a guaranteed minimum level of care for the elderly in the UK. A Green Paper is to be released to the Houses of Parliament next week amid signs that politicians from all sides of the house are now gearing up for a general election. National insurance is one such tax which has crept higher and...Read More
Stamp duty doubles for first time buyers
The amount of stamp duty paid by the average first time buyer has almost doubled since 2002, it has been claimed. According to a study conducted by Halifax, the average first time buyer paid around £960 in stamp duty five years ago. However, last year first time buyers were forced to pay out an average of £1,750 - an increase of 82 per cent. The rise has been attributed to the period of sustaine...Read More