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Monday 04th of August 2008

Latest Insurance News

The latest news from the insurance sector:

July 24, 2008

Quit smoking and save on life insurance

by Kay Murchie
Moneyfacts.co.uk has revealed that the price of life insurance is half of what is was 10 years ago. A price war between insurers and other providers such as supermarkets offering cheaper insurance has meant that life insurance is much cheaper than it was a decade ago. Car insurance and home insurance may have risen over recent years but according to moneyfacts.co.uk, ...

July 16, 2008

AA: Car insurance costs spiralling

by Kay Murchie
According to the AA’s quarterly British Insurance Premium Index, car insurance premiums are increasing again despite a brief respite. The index established that in the three months to the end of June, over £20 has been added to the average premium quote for comprehensive insurance. The average cost of this type of insurance is now £700. The hardest hit are young motorists who, on ...

July 11, 2008

Agreement reached to ensure homes will get flood cover

by Kay Murchie
A deal has been reached between the Government and the Association of British Insurers (ABI) to ensure that homes will continue to receive flood cover. Last month, the ABI warned the Government to take action against floods as its members will stop insuring people in high risk areas. The ABI has been urging the Government to pump more funds into ...

Zurich withdraws from RBS insurance arm bidding

by Kay Murchie
A further bidder has withdrawn from buying the insurance arm of the Royal Bank of Scotland (RBS). Swiss insurer, Zurich Financial Services Group, has decided to opt out of the bidding. A source close to the situation said negotiations collapsed due to price. Zurich was prepared to offer up to £5.5 billion for all of RBS insurance, however, RBS was looking ...

July 3, 2008

Fraudulent motor insurance claims worth £5 million every week

by Kay Murchie
According to industry body, Association of British Insurers (ABI), dishonest drivers face a nasty surprise as detection of fraudulent claims has increased by 70% over the last 3 years. Last year, the ABI uncovered 24,000 fraudulent motor insurance claims worth £260 million, or £5 million every week. Nick Starling, the ABI’s Director of General Insurance and Health, said honest ...

Clean driving licence holders benefit when it comes to car insurance

by Kay Murchie
A recent study by price comparison site, confused.com, has established that motorists with penalty points can pay up to 60% more for their car insurance than those with a clean licence, paying on average £370 more. Furthermore, the news is bad for younger motorists, as the research discovered that a 21-year-old female driving a 1.3 Ford Fiesta ...

June 23, 2008

PPI comparison tables now available on FSA website

by Kay Murchie
Consumers looking to purchase payment protection insurance (PPI) can now get advice from the Financial Services Authority (FSA). The watchdog’s website now has free, impartial comparison tables which are designed to help consumers compare the policies on offer and their cost. PPI has been the result of bad press lately after a report revealed that 2 million customers have ...

Consumers look to save money by trimming back insurance policies

by Kay Murchie
Over a quarter of consumers are looking to save money by cutting back on their insurance policies following the credit crunch. As a result, the insurance industry is facing a £1.5 billion according to a survey by business analysts, Deloitte. The survey, which was carried out last month by YouGov on 2286 adults, established that 26% of respondents plan ...

June 22, 2008

Defra announce plans for flood relief assistance

by Kay Murchie
One year on from last summer’s devastating floods, the Department for Environment, Food and Rural Affairs (Defra) is proposing to assist homeowners and businesses to better protect their premises from the affects of flooding. Defra is to commit £125,000 to setting up a website and phone line together with the Environment Agency. The aim is to provide people with the guidance ...

June 18, 2008

517,000 homes at risk of being flooded warns ABI

by Kay Murchie
The Association of British Insurers (ABI) is warning that the Government must take action against floods as its members will stop insuring people in high risk areas. According to the ABI, there are 517,000 homes at significant risk of being flooded. The floods last summer cost the ABI's members £3 billion in claims. Furthermore, nearly 5,000 homeowners are still ...

June 10, 2008

Women pay 9% less for their car insurance than men

by Kay Murchie
According to research from moneysupermarket.com, women get the best deal on car insurance while young male motorists are paying the most expensive premiums. A study by moneysupermarket.com has established that women pay 9% less for their car insurance than their male equivalents, with the average quote for a woman in her 20s being £320 compared to £370 for ...

June 9, 2008

1,800 jobs to go at Norwich Union

by Kay Murchie
Aviva is to cut up to 1,800 jobs at its Norwich Union business, as it looks to streamline its insurance operations. Britain's biggest insurer is to slash the administration jobs by 2010 as it reduces its customer service and back office centres for general insurance from 22 to 7. The company has pledged to try to find people other jobs ...

June 6, 2008

900 job losses at Zurich

by Kay Murchie
Swiss insurance giant, Zurich Financial Services, has announced a cost-cutting exercise which could result in a reduction of headcount of up to 900. In a bid to cut costs by 10% by the end of the year, Zurich staff have been informed that between 700 and 900 jobs, in its general insurance arm, are going to be lost. The insurer said the move was ...

June 2, 2008

New homeowners at risk by opting out of life insurance

by Kay Murchie
According to broker, My Mortgage Direct, in an effort to save cash, homeowners are ditching life cover. The broker warns that just 20% of new borrowers are opting for life cover to protect their mortgage. The organisation emphasises the importance of life cover and said borrowers are looking for ways to claw back cash on what they regard ...

May 29, 2008

People still being mis-sold payment protection insurance

by Kay Murchie
A report, which is due to be published next month, reveals that 2 million customers have been sold potentially worthless payment protection insurance (PPI). The policies cover monthly payments for goods, services or loans during illness and redundancy. Over the last 5 years, 6 million have signed up for the deals but the Office of Fair Trading, the Competition Commission and ...

May 27, 2008

Sale of RBS insurance arm progressing

by Kay Murchie
The sale of Royal Bank of Scotland's (RBS) insurance business is pressing ahead with seven bidders interested. Goldman Sachs and Merrill Lynch, which are advising RBS, are believed to have shortlisted a number of interested parties for its £6 billion insurance business to seven, ahead of the first-round auction deadline tomorrow. However, the shortlist does not include any bids from private equity ...

May 22, 2008

Kwik-fit and Swiftcover most competitive motor insurance providers

by Kay Murchie
A new study by price comparison website, moneysupermarket.com, has revealed that Kwik-Fit and Swiftcover are the most competitive car insurance providers. The biggest improver was Endsleigh, who went from 47th to the 6th most competitive provider. Over the last 12 months, moneysupermarket.com analysed 12 million quotes on their car insurance channel and established that Kwik-Fit and Swiftcover consistently provided the cheapest ...

May 16, 2008

Nationwide home insurance offers 30% discount

by Brian Turner
Nationwide home insurance offers 30% discount
Nationwide have just announced more competitive pricing for their home insurance, offering a 20% discount on home insurance. The new discount includes both new policies as well as renewals. In addition, when Nationwide home insurance is bought online, an additional 10% discount is applied. The result is that someone buying Nationwide home insurance online could now save up to 30% on ...

Brits putting travel insurance at risk by booking own holidays

by Kay Murchie
According to Marks & Spencer (M&S;) Money, a growing number of Britons are putting their travel insurance at risk by booking different parts of their holiday separately. Research from M&S; Money discovered that an increase in the usage of the internet has meant that half of British holidaymakers book their travels independently rather than using a travel agent. ...

May 13, 2008

1.15 million confess to having no car insurance

by Kay Murchie
1.15 million people confess to having driven a car in the last year without any insurance, according to a survey by Sainsbury's Car Insurance. The survey revealed that 19% said it was because they couldn't afford it, 19% said they didn't think it was necessary, 13% said they forgot to purchase it, while 13% said they didn't have time to ...