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.
Warning on insurance fraud
People who may be tempted to inflate their insurance claims have been warned that the industry is getting better at catching insurance fraudsters.The Association of British Insurers (ABI) has revealed that the insurance industry is uncovering £1.3 million worth of fraudulent claims every day, which is three times as much as in 2003.And the ABI believes that much of this is down to improved detect...Read More
Barclays Capital boss pockets £5 million
Bob Diamond, the boss of Barclays Capital (the investment banking division of Barclays Bank), has sold 1.8 million shares for a cool £5 million. This is in addition to the £27 million he received from the recent sale of the bank's fund management arm and further illustrates why the UK government and the UK regulators appear to be targeting the UK financial arena. At a time when the sector is...Read More
Is EDF set to offer 774p per British Energy share?
Rumours are rife that EDF is finally on the verge of tabling a new improved offer for long term target British Energy. The deal looks like going through after heavy intervention from the UK government which holds a 30% stake in the operation. However, there is some ill feeling in the City because investors had already rejected an offer just 9p lower having dismissed the terms as derisory. So wh...Read More
Has Gordon Brown alienated the business sector in the UK?
Despite Lord Mandelson criticising some of the UK's more prominent business leaders, who backed the Conservative party pledge to reduce the increase in national insurance, Gordon Brown yesterday repeated his concern that business leaders have been "duped". The initial attack by Lord Mandelson produced a furious backlash from the business arena and now Gordon Brown is literally provoking the same k...Read More
Council tax set to increase by £57 a year
The average council tax in the UK is forecast to increase by £57 a year after the Conservative party reviewed the government's pre-budget report and the decision to cut back on public sector services. It is believed the Alistair Darling is looking to force UK councils to reduce public sector spending by as much as £550 million a year while increasing the council tax receipts by 4% which equates...Read More