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.
US data leads to recovery in European stock markets
While European stock markets were down around 2% in afternoon trade there was a sudden about turn when US construction data hit the market. It revealed that construction spending in the US increased by 2.7% last month and investing in private construction by an even greater 2.9%. These are the largest one-off monthly increases since July 2004 and are seen by many as a sign that the US economy is o...Read More
Are foreign mortgage lenders entering the UK market?
While mortgage lending in the UK is down by 26% year-on-year and there has been a marked reduction in the number of mortgage lenders operating in the country, it would appear that foreign mortgage lenders are making a play for the UK market while it is at its weakest for some time. So what is going on?
Official figures show that while mortgage lending is down sharply in the UK on a...
Chelsea building society suffers £41 million mortgage fraud hit
It has been revealed today that the Chelsea building society has been hit by an alleged buy to let £41 million mortgage which has plunged the building society into a substantial loss for the first half of the financial year. The situation has also prompted a massive clear out the company's top management and a new management team have been installed to assess the situation and plot the way ahead....Read More
Unemployment at lowest rate since 2008
17/09/2014 An official report from The Office for National Statistics (ONS) has shown that unemployment rates have fallen to 6.2% over the last three months, its lowest rate since 2008. The number of unemployed people is now 2.02 million, which has fallen by 146,000 over the last three months. Those claiming Jobseeker's Allowance in August fell below one million for the first time in six years...Read More
LIBOR rate falls to 4.49%
The vital LIBOR rate has fallen 1.1 percentage points to 4.49% since the Bank of England reduced interest rates which has breathed new life into the money markets. Even though the fall of 1.1% is less than the 1.5% reduction in interest rates this is very much welcomed by the financial community which has seen borrowing costs increase massively over the last 12 months. However, some experts are su...Read More