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.
Are UK taxpayers growing immune to the ever-growing government debt?
As the UK government today confirmed it had to borrow £8 billion to balance the books in July, a month which has historically seen strong for net tax receipts, it would appear that UK taxpayers are becoming immune to the ever-growing government debt situation. Who would have thought just two years ago that we would be talking in terms of hundreds of billions of pounds of debt and UK taxpayers wou...Read More
Scottish bankruptcies and insolvencies on the increase
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Faith shoe chain falls into administration
In a bitter blow for the UK retail sector it was announced last night that Faith shoes has collapsed into administration with 1,800 jobs now under threat. It is believed that the administrators were called in after the company's debt was sold on and the future became untenable for the well-known chain. With 78 stores and 120 concessions, mainly in Debenhams, the owner of the business is known to h...Read More
The Obama and Brown show hits town
It has been revealed that Gordon Brown could well be the first European prime minister to visit Barack Obama at his new home, the White House. In chilling tones of Tony Blair's last few months in office it appears that Gordon Brown is on a whistle stop tour of the world which will see his reputation enhanced but at what cost?
Despite attempts to put forward the US/UK special relatio...
Home insurance flood effort 'going well'
The government minister in charge of flood relief has received a progress report on the recovery effort from last summer's extreme weather.After speaking to the Association of British Insurers (ABI), John Healey said that home insurance firms' efforts were well on track.Three quarters of those forced into alternative accommodation thanks to flood damage to properties are expected to be back home b...Read More