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.
Nationwide reintroduces the 125% mortgage
While the headline looks controversial and in total contravention of recent UK government guidelines, Nationwide has today announced a 125% mortgage aimed at those with negative equity. While the 125% mortgage figure will send tremors down the spines of UK regulators it is perhaps not as bad as it looks at first glance.
The offer will only be available to a minority of current Natio...
Is the internet your way out of financial trouble?
While the internet has changed so many areas of our every day lives it has also opened up a mass of opportunities which many people have yet to realise. However, with the recession starting to bite in the UK it seems as though now may be a perfect time to take a look at possible options open to you.
People seem to miss the point that the internet has not only opened up local market...
How will the Conservative party react to the pre-budget report?
The pre-budget report contained a number of ticking time-bombs for the UK taxpayer but also a number of traps for the Conservative party to consider. The new 45% tax band is nothing more than a gesture as it will only raise in the region of £5 billion a year but it puts the Conservative party in a difficult position. If they are seen to fight the introduction of a new tax band this will alienate...Read More
Authorities report increase in Polish workers applying for benefits
While there are many benefits to being a central part of the EU, the open employment market is one which does not yet appear to have benefited the UK. Over the last few years we have seen a significant influx of Polish workers into the UK and while the authorities continue to claim they are filling employment positions which are not wanted by UK workers, there has been a significant increase in be...Read More
Mortgage costs continue to fall
The Council of Mortgage Lenders (CML) has today confirmed that the cost of UK mortgages has fallen to a five-year low. The percentage of income required to cover the average mortgage payment has now fallen to 12% which will bring more and more people into the mortgage market and hopefully improved demand for property. While it has to be said that the average household income has also fallen ove...Read More