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.
It is time to look at the UK housebuilding sector again?
Amid signs that UK house prices are starting to move higher, according to the recent Nationwide Building Society report, we have seen a rise in UK housebuilder share prices. This is a significant move from the recent trend where concerns regarding debt, business levels and the immediate future saw many investors run for the hills. So is it too early to look at the housebuilding sector or has it tu...Read More
Lloyd's Of London joins criticism of Lord Turner
Lord Turner has today come under further attack from Lord Levene of Portsoken who is the chairman of the Lloyds of London insurance market. Like so many people in the financial industry, Lord Levene appears to have lost patience with the FSA, and Lord Turner in particular, who appear to be trying to demonise the UK financial sector at every opportunity.
Many people seem to forget th...
Prudential Directors Cancel Orphan Fund Payments
Just a few months ago it was suggested that the Prudential was looking at the possibility of authorising a one-off payment to policy holders in exchange for giving up their future rights to the company’s so called orphan assets. There were rumours that the payment would have been several hundred pounds for each of the company’s 4.5 million policyholders, but the company has decided no...Read More
Bank profits 'cost households £441 each'
Financial marketplace Zopa has estimated that the cost of HBOS and RBS' profits results in a bill to each UK household of £441, marking a ten per cent year-on-year increase.Recently, the banks made their profits known, with HBOS recording a £5.7 billion total and RBS achieving a £9.2 billion profit."The truth is that banks in the UK have let down their customers badly by failing to deliver agai...Read More
Wrapit Folds For Good
Despite early hopes that those who had not received their wedding presents from fallen idol Wrapit would be in line for a payment from the administrators or their gifts have been dashed. The administrators of the group, KPMG, have confirmed that it is highly unlikely that any funds will be available to compensate those who have suffered. But there may be light at the end of the tunnel...