Government to ban referral fees
by Gill Montia
Story link: Government to ban referral fees
Referral fees in personal injury claims are to be banned by the Government, the BBC has reported. The fees have been blamed for encouraging a compensation culture and for sharp rises in motor insurance premiums alongside an explosion of law firms offering no-win-no-fee services and pestering potential claimants with unsolicited approaches. According to the Association [...]
BIBA acts on motor insurance costs
by Gill Montia
Story link: BIBA acts on motor insurance costs
The British Insurance Brokers’ Association (BIBA) is calling on the Government to implement an eight-point plan to reduce the spiralling cost of motor insurance. The Association’s recommendations, which have been submitted to the Transport Minister ahead of today’s Transport Select Committee meeting, include: The introduction of Continuous Insurance Enforcement; signposting to a relevant broker, particularly [...]
Civil Engineers warn on flood defence spending cuts
by Gill Montia
Story link: Civil Engineers warn on flood defence spending cuts
The impact of reduced public funding for flood defences will demand a more innovative approach to managing flood risk, the Institution of Civil Engineers (ICE) has warned. Only £2 billion has been allocated by the Coalition Government for flood defence investment over the four years from 2011 to 2015, compared with £2.15 billion by the [...]
ClimateWise advocates government partnerships with insurers
by Gill Montia
Story link: ClimateWise advocates government partnerships with insurers
ClimateWise, a group set up by insurers to respond to the risks and opportunities of climate change, has launched a global insurance industry statement that focuses on developing countries. Prepared in collaboration with the United Nations Environment Programme Finance Initiative, The Geneva Association and Munich Climate Insurance, the statement seeks to highlight ways in which [...]
Former pleural plaques claimants’ scheme open for business
by Gill Montia
Story link: Former pleural plaques claimants’ scheme open for business
Former pleural plaques claimants have until 1st August 2011 to lodge their claims with a new government scheme. Insurers have long argued that the plaques, which are areas of fibrosis on the inner surface of the ribcage and the diaphragm, do not impact on health or lead to asbestos-related diseases. However, following a Law Lords’ [...]
Government consults on annuity reforms
by Gill Montia
Story link: Government consults on annuity reforms
The Government has launched an eight-week consultation on proposals to remove the requirement to turn pension savings into an annuity by the age of 75. The requirement has existed since 1976, when the average life expectancy of a healthy 65 year-old male was 13 years, but with annuity rates having plummeted during the credit crisis [...]
New law on third-party dog insurance
by Gill Montia
Story link: New law on third-party dog insurance
The Government is considering plans for legislation that will demand every dog owner in the UK carries third-party insurance against their pet causing injury to a person. Concerns that dogs are being bred solely for the purpose of intimidating others have led ministers to review the Dangerous Dogs Act 1991. According to Home Secretary Alan [...]
Minister to review ATOL scheme
by Gill Montia
Story link: Minister to review ATOL scheme
Travellers who book flights on the Internet could soon be better protected financially, as the Government announces a review of the Air Travel Organisers’ Licensing (ATOL) scheme, which was set up in the 1970s. Transport Secretary Lord Adonis also wants to clarify the situation for holidaymakers who opt to “mix-and-match” carriers and accommodation, rather than [...]
Equitable policyholders win High Court case
by Gill Montia
Story link: Equitable policyholders win High Court case
The High Court has rejected the Government’s decision not to implement the full recommendations of Parliamentary Ombudsman, Ann Abraham, regarding compensation for Equitable Life policyholders who lost money when the firm came close to collapse nine years ago. In July of 2008, Ms Abraham published a report on the demise of Equitable, which from the [...]
Fines for uninsured driving better value than insurance
by David Masters
Story link: Fines for uninsured driving better value than insurance
Rogue drivers getting behind the wheel without insurance are not being deterred because the penalties if they’re caught are too lenient, Direct Line claimed this week. Under new government proposals, motorists caught driving an uninsured vehicle will be fined as little as £50 – less than fine given out to people who overfill their bin, [...]
ABI calls for improved competitiveness in the UK
by Richard Kilner
Story link: ABI calls for improved competitiveness in the UK
The Association of British Insurers (ABI) has called upon the Government to take action in order to bolster the competitiveness of the United Kingdom. Four out of five insurers believe that unless UK competitiveness is enhanced the country will see a decline in insurance firms based here, and almost two in three senior managers are [...]
AIG sells Indian IT unit to MphasiS
by David Masters
Story link: AIG sells Indian IT unit to MphasiS
AIG has agreed terms with Indian software firm MphasiS to sell its Indian-based IT services and solutions unit. MphasiS acquired AIG Systems Solutions Private for an undisclosed sum. The unit provides IT services to AIG companies around the world. Over 800 people are employed by the unit in the Indian cities of Chennai and Kolkata. [...]
Aon blasts government’s credit cover
by David Masters
Story link: Aon blasts government’s credit cover
Aon Trade Credit criticised the government’s “failed” credit insurance scheme this week as inadequate for larger companies. The company called on the government to increase the cover limit to £10-£15 million from the current limit of £1 million. It added that the UK government should follow the example of the French government by not limiting [...]
Construction firms trading without credit cover
by David Masters
Story link: Construction firms trading without credit cover
One in five construction companies are now trading without credit insurance cover, according to research by the Construction Products Association (CPA). Meanwhile, firms continue to steer a wide berth around the government’s credit insurance top-up scheme. Of the 100 construction firms polled, the CPA found just one that had opted for the government plan, and [...]
Government proposes compulsory insurance for elderly care
by David Masters
Story link: Government proposes compulsory insurance for elderly care
Elderly people in England could be charged up to £20,000 to guarantee basic social care and support at the end of their lives under new proposals being considered by the government. The compulsory insurance scheme is one of three options under consideration to fund a new National Care Service. Health Secretary Andy Burnham said the [...]
Government proposes long-term care insurance
by Gill Montia
Story link: Government proposes long-term care insurance
The Government is proposing a new form of care insurance, details of which are contained in a Green Paper out today. The proposed scheme could cost between £12,000 and £20,000 per individual but in return would provide a guarantee of long-term care. The maximum cost is less than the average £30,000 now paid by elderly [...]
BIBA proposes ‘signpost’ solution for over-65s
by David Masters
Story link: BIBA proposes ‘signpost’ solution for over-65s
Insurers are putting pressure on the government to modify new equality laws so they continue to refuse cover to elderly clients. Currently, many insurers put upper age limits on motor and travel insurance policies, and charge people double premiums on travel insurance after they turn 66. The government’s proposed Equality Bill would put an end [...]
GM declares itself bankrupt
by David Masters
Story link: GM declares itself bankrupt
General Motors Corp. (GM), the world’s largest car maker, yesterday filed for bankruptcy protection with a plan to restructure the company so it can compete in international markets. The bankruptcy marks the end of the Detroit-based company’s 101 year history. It is the biggest ever filing by a US manufacturer, and the third largest in [...]
Darling’s ‘death warrant’ credit cover
by David Masters
Story link: Darling’s ‘death warrant’ credit cover
Steve Dowdle, managing director of Sony UK, said the government’s credit insurance top up scheme has “effectively signed the death warrant” for retailers across the UK. The top up scheme – announced in last week’s Budget by Chancellor Alistair Darling – aims to support businesses that have had their credit insurance cover reduced. A government [...]
Government support insufficient, credit insurers warn
by David Masters
Story link: Government support insufficient, credit insurers warn
Key players in the credit insurance industry have criticised the government’s credit insurance top-up scheme as insufficient. Euler Hermes and Atradius said the government’s top-up support for businesses – announced in this week’s budget – is two narrow and will only help a small number of firms. A key limitation of the scheme is that [...]
