Insurance fraud hits record high
UK insurance fraud hit £840 million last year in the UK which was a 14% increase on the figure for 2008. While it is no surprise to see insurance fraud increase during recessionary periods, the amount of money involved is enormous and has surprised many experts. So what impact will it have upon the UK insurance market?
The simple fact is that the more insurance fraud that occurs in the UK the more pressure this places upon law-abiding citizens and the higher premiums will be pushed. Unfortunately, the insurance industry has a habit of passing on any losses to customers and when you consider the massive figures involved we can only expect premiums in the UK to increase dramatically in the short to medium term.
When you consider that one particular area of the insurance market, i.e. the car insurance sector, has seen premiums increase by up to 30% due partly to the cost of insurance fraud over the last 12 months, this perfectly reflects the growing problem. Quite why law-abiding citizens should be forced to increase their premiums to cover the cost of those "breaking the law" is open to debate but this has always been the situation in the UK insurance arena.
Share this..
Related stories
Insurers forced to be clearer over premiums
10/07/2014 Insurance companies will soon be expected to provide clearer information on renewal quotes, as the Financial Conduct Authority (FCA) prepares to draw up new rules for the industry. The new regulations are likely to include measures to force insurance companies to provide extra details when a customer comes to renew their policy. It’s claimed that customers will now have to b...
Read MoreWhy has Equitable Life taken so long to sort out?
The embers of the former financial giant in the UK, Equitable Life, have been well and truly doused but there is still much anger with regards to the 1.5 million people who were impacted by the company's inability to cover its future liabilities. The company nearly collapsed after losing a court case during which it attempted to reduce liabilities but failed. However, it is estimated that a large...
Read MoreYoung drivers lack basic car know-how
Young drivers fork out £140 million every year in car maintenance due to their lack of basic mechanical know-how, new research suggests.According to the study carried out by Direct Line, half of all drivers under 25 do not know how to jumpstart their car or replace a tyre, compared to 25 per cent of drivers aged 45 or over.Nearly one in three admitted to paying to have their oil changed, while 25...
Read MoreCar insurance fees hit £333m
Britons are paying out huge sums in fees to car insurance providers every year to make amendments to their policies, it has been revealed. The fees are charged by providers when drivers fail to notify them of changes which could invalidate their policies. These include a change of address or name or improvements to vehicles. Price comparison site uSwitch.com calculates that some £333 million was...
Read MoreWork At Home Population Warned On Insurance
As we prepare for National Working At Home Day, Lloyds TSB Insurance has taken the opportunity to warn the growing band of work at home entrepreneurs that they need to ensure they have the correct insurance in place. It seems that the growth in the use and availability of the internet has induced a massive increase in the numbers who work from home. Unfortunately, while very often it may only...
Read More