Bill for losses from floods could be more than £100 million

It has been estimated that the bill for the losses that were suffered in the recent and devastating floods in Cumbria could come to more than £100 million, according to a recent report. Hundred and homes and businesses were affected after flood defences failed to provide protection when rivers burst their banks in Cumbria, Dumfries, and Southern Scotland, causing devastating levels of damage and huge losses. Read more

Tags: Insurance, insurance providers, Association of British Insurers, finance, environment, scotland, flood, weather

Lying motorists to be weeded out by insurance firms

It has been reported recently that motorists that try and hide or lie about convictions when they apply for insurance cover are to find themselves at the centre of a crackdown by the insurance industry. Read more

Tags: Driving, insurance cover, insurance industry official, car insurance fraud, Association of British Insurers, car insurance, better deal

Recession causes insurance fraud to soar

According to a recent report the level of insurance fraud has been rocketing as a result of the bleak financial climate and the recession. A report was recently released by the Association of British Insurers, and officials from the ABI have said that in 2008 the number of attempts to defraud insurance companies increased by 17 percent compared to 2007. Read more

Tags: insurance claims, Association of British Insurers, insurance cheats, road, report, premiums, insurance fraud, Recession causes insurance

Insurance policies being compromised due to credit crunch

There are many different ways in which UK households are trying to cut back on their monthly outgoings in the current financial climate, as most people are struggling to make ends meet properly due to their finances. Read more

Tags: different ways, financial climate, insurance fraud, insurance policies, finance, Association of British Insurers

Ban on age discrimination could cost drivers and travellers

According to a recent report both drivers and holidaymakers could find that the cost of getting insurance will soar as a result of a government initiative to try and ban age discrimination in these industries. Read more

Tags: government, whilst, cost, holidaymakers, travel insurance, Association of British Insurers, car insurance

ABTA: Travel insurance is very good value

With the travel insurance market more competitive than ever, insurance policies are currently “very good value”, an expert has said.

The Association of British Travel Agents (ABTA) has said that “travel insurance is probably the cheapest it’s ever been”. Despite this, people often do not bother or forget to take out a policy, particularly if they are going on short trips, according to the organisation.

A recent report from the Association of British Insurers revealed that the group most likely to make an insurance claim are those aged over 65.

In fact, over 65-year-olds are three times as likely to make a claim as those aged over 35 and the costs are on average three and a half times more expensive than those of under 50-year-olds.

ABTA says people who travel at least twice a year, particularly if they take short or last minute holidays, should consider an annual policy as this will cover them in case they forget to take out insurance.

“If you’re the kind of person who is fairly spontaneous and takes advantage of last-minute cheap deals then the easiest thing to do is take up an annual policy,” advises Sean Tipton, a spokesman for the ABTA.

Tags: organisation.A recent report, travel insurance market, Association of British Travel Agents, report, policy, Association of British Insurers

Highest number of insurance calls since 2007 floods

The recent storms and bad weather have generated the highest number of calls since the floods of last summer, according to one insurer.

Abbey stated that call volume doubled by half with people enquiring about their insurance cover while claims increased by over 55 per cent.

Findings from the financial expert said that the average claim total for 2007 storm damage stood at £913 while the average claim total for flood damage is £15,350.

The Association of British Insurers (ABI) said that some of its members will already have started contacting policy holders in the hardest hit areas.

Speaking to the Guardian, spokesman for the ABI, said: “Insurers will be contacting customers and saying that they know they are in the eye of the storm, as it were, and offering them help with their claim.”

Abbey insurance advised homeowners to keep all insurance and important documents in a water tight container and ensure you have a copy of your insurance hotline telephone number in the event of an emergency.

Tags: container, Insurance, the Guardian, Storm damage, insurance hotline

Young drivers need to ’shop around’ for insurance

Young drivers have been advised to ’shop around’ for insurance after some providers have withdrawn cover for them, according to an insurance body.

The Association of British Insurers (ABI) said that there are some companies who do not offer young drivers cover as they fear they are more likely to have an accident.

Malcolm Tarling, spokesperson for the ABI, said: “They are more likely to claim and the claims cost a lot – I have never seen anything more expensive.”

He added that as a result young drivers should shop around to find the best deal for their insurance, as some companies are more competitive than others.

“Look into the pass plus; some companies now offer incentives for young drivers who have this,” he concluded.

According to reports in the Daily Telegraph, Axa, More Than, Swiftcover, Saga and HBOS brands such as Esure, Sheila’s Wheels and Halifax are among the growing number of insurance providers that automatically reject all applications from 17-year-old drivers.

Tags: Lloyds Banking Group, result, hbos, Disaster Accident, Association, Association of British Insurers

Financial websites increased awareness of need for life insurance

Financial websites have helped raise awareness of the need for consumers to take out life insurance, according to insurance experts.

The Association of British Insurers (ABI) said that websites are useful for those consumers who know what sort of life insurance policy they need.

Those that are not aware of the products available should speak to a financial advisor says the body.

However, Nick Kirwan, head of health and protection insurance for the ABI, said: “Anything that helps to spread the message among consumers and provide choice to people… has to have contributed in some way to helping raise awareness.”

The ABI estimated that one in three Britons have no life insurance – and a further one in three have not renewed their life insurance cover for five years, so may be underinsured.

Meanwhile, back in 2005 the Telegraph reported that Swiss Re, the world’s largest life and health reinsurer, estimated that there was a £2.3 trillion ‘protection gap’ between the expenses of UK families and what was actually covered by life insurance policies.

Tags: abi, advisor, Association of British Insurers, websites increased awareness, business, message

People need to review life insurance requirements

Many people “are running around uninsured” as a result of neglecting to change their insurance policies to reflect changes in their circumstances, says an industry expert.

Life Direct said it is “extremely important” for people to review their life insurance policy whenever their circumstances change.

Keiran Platt, director and financial adviser at the broker, said that people should not be put off by looking at life cover options, as it need not be that expensive.

He said: “The cost of life cover has been reducing a lot over the last few years – so it may be that they can cover their new circumstances and not be paying much more.”

Mr Platt added that a lot of people cover their mortgage but do not think about protecting their family as well.

According to estimates from the Association of British Insurers, one in three Britons maybe underinsured as a result of not renewing their life insurance cover in five years.

Tags: Insurance, looking at life, expert, financial adviser, director, life cover options, broker

Annual travel cover ‘more popular’

More people are taking out annual travel insurance cover because of changing trends in holiday habits, it is claimed.

According to Halifax Travel Insurance spokesperson David Bruce, people are currently taking more short breaks rather than one long summer holiday, meaning that the flexibility provided by annual cover is becoming more popular.

Cheaper airlines are believed to be part of the reason, enabling frequent and affordable weekend breaks abroad, Mr Bruce said.

“More and more people are taking more than the traditional one summer holiday a year so it makes more sense to have annual cover,” he claimed.

However, Mr Bruce warned that should holidaymakers be required to make a claim in the event of a theft abroad, they must obtain a crime reference number or else “the claim cannot be validated”.

According to the Association of British Insurers, travel insurance policies should provide cover for consumers in the event of medical emergencies, loss or damage to personal possessions, loss or theft of money and expenses incurred due to a delay or cancelled departure.

Tags: cover, Types of insurance, Association of British Insurers, crime, flexibility, travel

Gay applicants “fairly treated” by life insurers, says ABI

The infamous ‘gay question’ during life insurance applications is no more, the Association of British Insurers (ABI) reassured consumers today.

Whereas previously, applicants had been asked point-blank to specify their sexuality, the ABI has moved to confirm that, under a statement of best practice implemented in 2005, a more non-specific question regarding HIV status is asked.

Claimants are also reassured that any past negative tests they might have taken will have no bearing on their life insurance.

A spokesperson for the association said that “it’s possible that there has been a perception that applications were not treated in the same way in the past, but now no longer do people have to disclose…what their sexuality is.”

“There is government legislation now which means that you don’t have to disclose whether you’re in a civil partnership, so there can be no way that the insurance company knows what your sexuality is.”

Many gay men had felt unfairly treated by the question, which implied that their sexuality posed an inherent insurance risk, providing the impetus for the reform.

Tags: life, risk, Association of British Insurers, question regarding hiv, question, past, education, perception

Insurance law might be reformed

An insurance law which has been on the books since 1906 might be changed to make claims easier for policy holders, it emerged today.

The Law Commission has put forward proposals which would make the refusal of claims due to errors or omissions in disclosure sections of the proposal forms more difficult.

Currently, insurers can use discrepancies between the claim and information given when the policy was taken out to deny funds.

The leader of the project, David Hertzel, said that the insurance law concerning errors in proposal forms, which is based on the Marine Insurance Act of 1906, needed to be amended thanks to the changing claims market. “Private insurance as we know it now was the preserve of the wealthy few”, he claimed. “Today the insurance industry is a huge business.”

He added that many claimants did not realise that “they have a duty to disclose information that they have never been asked for, but which could influence an underwriter’s judgement of the risk”, therefore leading honest claims being thrown out.

The Association of British Insurers said in a statement that claimants must not be priced out by any change to the law, and that they would make “a full and robust response” in the autumn. The proposals have been put out for consultation until November 16th.

Tags: huge business."He, proposal, Insurance, underwriter's judgement, claimants, Marine insurance, Association of British Insurers, underwriter

Chucking out time worst for accidents

Young drivers need more encouragement to stop them driving while drunk as alarming new figures show that fatality rates remain high.

The Association of British Insurers (ABI) is calling upon the government to step up efforts to tackle the problem of young motorists driving home from the pub.

According to the organisation, the number of young males killed or seriously injured on the roads is three times higher between 23:00 and 01:00 on Fridays and Saturdays than at any other time.

“Every weekend 76 young male drivers are killed or seriously injured driving between 23:00 and 01:00,” Justin Jacobs, motor manager at the ABI, told a conference for motor charity Brake. “Too often a night on the town ends in tragedy.

“We need a government information campaign to make young drivers aware of the dangers of driving at night.

“Some insurers already offer lower premiums to young drivers who only drive during the day,” he added.

Mr Jacobs also called for a limit to the number of passengers that young drivers are allowed to carry, citing statistics which show that a youngster with three or more passengers in his car is three times more likely to crash.

Young motorists can bring down their car insurance premiums by shopping around for an insurer that offers competitive rates to those who only drive in certain conditions.

Tags: three times, motorists driving home, American Beverage Institute, Traffic collision, certain conditions, time."Every weekend, Association of British Insurers