The F Word and Insurance

The F word in this case is Fraud and Insurance Fraud means that the average premium paid by policyholders is increased by £40 per year, according to a recent report.

With 1 in 11 claims reported to be in some way fraudulent, false claims are costing the insurance industry £4 million a day. And with 11% of adults (or around 5 million people) having committed insurance fraud in the past 12 months, fraud is on the increase according to the Association of British Insurers (ABI).

So who are these 5 million people?

And what can be done to stop them taking money indirectly out of our bank accounts?

Well if you’re a male, aged under 45 and are paying under £500 a year for your insurance whilst living in rented accommodation in the North of England then maybe it’s you as based on the average, the report says that:

- People over 45 are less likely to commit insurance fraud

- If you pay over £500 for your insurance you are 50% less likely to commit insurance fraud

- Homeowners are less likely to commit insurance fraud

- Males are 1.6 times more likely to commit insurance fraud

- If you live in the North of England you are 1.7 time more likely to commit insurance fraud

- If you have unsecured debt over £1,000 you are twice as likely to commit insurance fraud

- If you have a household income of less than £10,000 a year you are 2.6 times more likely to commit insurance fraud


Of the 7,000 people questioned in the ABI survey, 85% of the fraudulent claims involved the exaggeration of the value of a genuine loss with 15% of claims relating to a totally made up loss.

“Insurance fraud means that honest people and businesses throughout the UK are being punished through no fault of their own”, said Mark Burdett, the Marketing Manager for The UK’s Business Insurance Brokers, Northern Counties.

“The cost of insurance fraud is on the increase and I believe the government should be doing more to discourage fraudulent behaviour. Tougher penalties in the form of criminal prosecutions as well as highlighting the seriousness of insurance fraud could both help reduce the number of fraudulent claims and ultimately reduce what we all pay for insurance.”

Useful Tips for Avoiding Flooding

The summer of 2007, in the United Kingdom at least, hasn't exactly been what many people and businesses would have hoped for. With record rainfall in many parts of the UK, people and businesses have had to deal with flooding, storm damage and in some cases fatalities.


So is Climate Change anything to do with this unusual summer weather and is it indeed something we should get used to on a more regular basis? Or is summer 2007 just a freak occurence that isn't likely to hit our homes and businesses more often?


If you read the press or watch the news then unfortunately there seems no definative answers to these questions so whilst the "experts" are looking into why these storms and flooding has occured, Northern Counties Insurance Brokers have come up with these useful tips on how you can help avoid flooding for your business.


PRE LOSS

1) Ensure where possible all electrical equipment and stock is stored at least four feet above ground
2) Turn off electrical equipment apart from burglar alarms
3) Turn off the supply to central heating units if at ground floor
4) Move vehicles to high ground if possible
5) Sand bag the premises if there is a high exposure to potential flooding
6) Consider constructing gullies to funnel water to drains
7) Clear all drains and gutters on and around the premises
8) Move high value items away from unmanned premises



POST LOSS

1) Remove debris where possible. If the debris is in any way contaminated, you may need to contact the emergency services
2) Save items of value for inspection
3) If stranded, contact the emergency services immediately
4) Allow ventilation to the premises if possible
5) Consider up to £500 of emergency repairs to mitigate future losses
6) Take all appropriate and reasonable measures to protect the premises from future damage or theft
7) Notify your insurance broker or insurance company as soon as possible


2007 has so far seen many people and businesses suffer due to storm and flood damage so hopefully these few tips will help try and prevent this happening to you in the future.