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.
Government minister finances shrouded in secrecy
Despite a promise by Gordon Brown to be "whiter than white" during his time in office it appears that this promise has yet again been broken. It has taken two years for the government to agree to release the financial details of each and every minister and even now it would appear that many ministers are looking to hide their investments and finances behind "blind trusts". The latest name to be me...Read More
Will Marks & Spencer ever be the same again?
UK retail giant Marks & Spencer is expected to report full-year pre-tax profits of £628 million this week, up 4% on the previous year. However, this will be a last set of results announced under the stewardship of Sir Stuart Rose with many expecting a radical overhaul of the business in the medium to longer term. So what is happening at Marks & Spencer? Despite the fact that Sir Stuart Rose ha...Read More
Abbey Home Insurance burglary warning
Domestic burglaries increase during recessions, meaning homeowners should be on guard, according to research from Abbey Home Insurance.The firm revealed that there was a 33.8 per cent rise in the number of burglaries in England and Wales during the last recession between 1990 and 1992.In addition, statistics from the British Crime Survey recorded a similar trend.It warned that, despite the temptat...Read More
UK savers to receive text when introductory rates end
24/07/2015 Savers will receive a text message from their bank or building society when their introductory interest rate expires, under new plans by the Financial Conduct Authority (FCA). Many savers are enticed by introductory ‘teaser’ rates by banks and building societies, however, after a limited time these rates often switch the customer onto a poorer deal. The FCA has said that sa...Read More
FSA to dish out fines to UK banks
The FSA (Financial Services Authority) has today confirmed that two UK banks are in line for significant fines for the mishandling of customer complaints. It was also confirmed that problems have been discovered at five banking groups in the UK, two of which have been referred for further investigation, and five others are currently amending their complaints procedures. Consumers have been conc...Read More