15.12.2011 insurancetimes.co.uk http://www.insurancetimes.co.uk/oft-probe-sparks-calls-for-admrial-to-reveal-income-streams/1394163.article

All of Swinton’s executive board has been fired with immediate effect by parent company Covea over concerns surrounding a performance-related share scheme.  The board of French insurer Covea confirmed that a new executive board at Swinton had been appointed to "ensure the continued smooth running of the company" along with the senior management team.

In a statement Covea said it had taken the action because it had lost confidence in the insurance broker's executive board and "was concerned that the former executive board has put their short term interests ahead of the long term interests of the company and its employees.

"The issue concerns the executive board's performance-related share scheme payments, due to have been made in Q1 2012."

13.12.2011 insuranceage.co.uk http://www.insuranceage.co.uk/insurance-age/news/2132072/entire-swinton-executive-board-sacked

21.01.2011 insurancetimes.co.uk http://www.insurancetimes.co.uk/story.asp?sectioncode=13&storycode=388847&c=1

21.01.2010 from insurancetimes.co.uk  http://www.insurancetimes.co.uk/story.asp?sectioncode=13&storycode=388831&c=1

Thousands of motorists are putting their motor insurance cover at risk and driving illegally by knowingly giving false information or failing to disclose important facts, such as motoring convictions, the ABI has warned.

Responding to its survey of 2,600 adult motorists, published today, the ABI said: 

• Over half (53%) think it is acceptable or borderline behaviour for an older, lower-risk person to insure a vehicle in their name when a younger higher-risk driver is the actual main driver (known as 'fronting').
• One in five drivers would not rule out exaggerating the number of years since they last claimed.
• 12% might be tempted not to disclose relevant motoring convictions.
• One in ten would not rule out changing details, such as their age, address or occupation, in order to get cheaper car insurance.

The ABI’s director of general insurance and health, Nick Starling, said: “Trying to deceive your insurer is a false economy that will cost you dear.

"Of course everyone wants to get the best motor insurance deal, but being less than truthful is not the way to do it.

"Not being honest with your insurer could lead not only to you driving illegally, but to financially crippling bills if involved in an accident, harder to obtain and more expensive future insurance, and difficulties in accessing other financial products."

19.01.2011 from insurancetimes.co.uk http://www.insurancetimes.co.uk/story.asp?sectioncode=13&storycode=388788&c=1

Major motor insurers have agreed to restrict the information they swap about their pricing strategies.

The Office of Fair Trading (OFT) has forced seven insurers to limit their use of a computer system that lets them compare details of their quotes.  The OFT is worried this might have undermined competition among insurers, potentially leading to drivers paying higher premiums.  This would have been a breach of the UK's competition laws.

"Being able to view competitors' pricing strategies could potentially have led to the risk of price co-ordination, putting upward pressure on premiums," said an OFT spokesman.

The computer software in question is called "WhatIf? Private Motor" and is supplied to insurers by Experian.  It gathers details of the quotes that insurers provide to brokers, and lets them analyse the price and risk that they, and their rivals, attach to the different elements of an insurance quote.

"Insurers were able to access information about their competitors' future pricing intentions as the tool was received by insurers in advance of the pricing information going 'live' in insurance policies sold by brokers," the OFT explained.The OFT stressed that it had not examined the actual effect of the software on premiums, nor had it made a formal finding that competition laws had been breached.  But the regulator hopes that the agreement of the companies to restrict the exchange of pricing data will encourage other insurers to follow.

"We are aware that similar market analysis tools exist both in motor and other insurance markets and we urge companies using them to ensure that they are complying with competition law," said Clive Maxwell, executive director at the OFT.

The seven insurers that OFT is hoping to tie down with a formal written agreement are Ageas (formally Fortis), Aviva, AXA, Liverpool Victoria, RBS Insurance, Royal Sun Alliance and Zurich.  The Association of British Insurers said: "We welcome the OFT's proposal to consult on an approach that has been agreed with some motor insurance companies to ensure that there is no concern about any infringement going forward."

Rupert Roker Consumer Focus said the OFT should now look at the sale of other forms of insurance.

"A motor insurer knowing what prices a customer will be quoted by other companies is very bad news for consumers," he said.

"Customers who have shopped around to get the best price will be left feeling they have got a particularly raw deal."

13.01.2011 from BBC News http://www.bbc.co.uk/news/business-12180025

Royal Bank of Scotland (RBS) and its NatWest subsidiary have been fined £2.8m for failing to deal properly with customers' routine complaints.  The Financial Services Authority (FSA), which imposed the fine, said there was an "unacceptably high risk" that the customers had been treated unfairly.  The banks' main failings were delays, shoddy investigations and inadequate explanations.  RBS acknowledged its complaints handling had been poor.

"We recognise the importance of complaint handling for our customers and are focused on addressing the root causes of complaints," said Brian Hartzer of RBS.

'Major changes' needed

The poor performance of the RBS and NatWest staff came to light in the autumn of 2009 when the FSA was investigating the way all the UK's main banks had been dealing with complaints.  It found problems with more than half of a small sample of complaints it examined at RBS and NatWest.  For instance, in 62% of cases the complaints were not dealt with in time and the customers had not been told they could go to the Financial Ombudsman Service (FOS) if they were still dissatisfied.  The FSA said the blame lay with poor training and guidance for the bank staff assigned to dealing with complaints, and inadequate monitoring of their work by managers.

"We expect firms to treat customers fairly and that consumers can be confident that their complaints will be dealt with properly," said Margaret Cole, the FSA's managing director of enforcement and financial crime. However, the FSA said the banks' behaviour had not been "deliberate or reckless" and they had not "intentionally profited" from their mistakes.

New rules coming

Last year, the FSA severely criticised the poor way UK banks dealt with complaints.  As a result of its industry-wide review, it told all the banks to improve their procedures.  As part of this process, the regulator has also been consulting on new rules for the industry. It has proposed:

• An end to bank letters that reject complaints but fail to explain that customers can challenge this and go to the Financial Ombudsman Service
• Atipulating that banks identify a senior manager responsible for complaints handling
• Putting in remedies for common complaints
• Raising the maximum compensation level that can be ordered by the Ombudsman from £100,000 to £150,000.

The banks and the FSA itself now publish data every six months on how many complaints banks have received, the type of complaint, and the outcome.  The FSA pointed out that at RBS and NatWest it had only examined the way routine complaints were dealt with.  Its findings did not cover complaints about the mis-selling of payment protection insurance, or bank overdraft fees, which have generated hundreds of thousands of complaints to the major banks in the past few years.

from BBC News http://www.bbc.co.uk/news/business-12161181

Drivers who are notified of accidents in which they were not involved say they are being given insufficient help by their insurers to clear their names.  Misidentification can happen as a result of licence plates being written down incorrectly or even as part of a fraudulent claim.  Radio 4's Money Box programme has heard of several cases stretching out over months with no evidence being offered.  Insurers say they work hard to clear up such cases as quickly as possible.

Accident mystery

Pamela Westcott from Kent was worried when her insurer, Prudential, said it had been notified that she had been involved in a car accident in June.  She was given the time and date of when it was supposed to have happened, and she remembered she had been in her car at the time.

"I was driving, I was out shopping, but there was nothing as far as I was concerned, no incident whatsoever."

Pamela wanted to know where this alleged accident had happened and what damage had been done to the other car, as nothing had happened to hers.  After four months had gone by, she had still not been told, and so she assumed the case had been shelved.

Details witheld

Then she got another unwelcome surprise:  "They said they couldn't write it off because there were witnesses to the event. My reaction was: 'witnesses to what?'"

"I can't understand why they can't give me more information, why they aren't trying harder to find out what happened."

More than six months on she still had not been told, until Money Box contacted Prudential.  It said as no evidence of Pam's involvement had been forthcoming, it was now finally closing the case.  A spokesperson for Prudential said:

"We sympathise with Ms Westcott's frustration with the length of time taken to close this claim. Despite requests to the other party's insurer, we were not given any detail about the accident, and so were unable to contradict any evidence.

"We have written to Ms Westcott to confirm that her premium was not affected by this claim when she renewed her policy, and that the other insurer has now accepted full liability for the claim."

Even if Pamela had been told details of the accident, it would not necessarily have helped clear the case up quickly.  Liz Tunmer from Brighton was notified of an accident she was alleged to have been involved in at her local supermarket car park in August. 

"The driver had returned to her car to find it damaged and to find a note on her windscreen which had on it my registration," she said.  Liz knew she had not caused an accident, and even asked the supermarket to look at its CCTV footage to back her up.

Poor communication

She says it could not find evidence of one either.  Liz told her insurer Endsleigh but several weeks later she was contacted directly by Aviva, which provides Endsleigh's insurance, which told her she may also be facing a personal injury claim:

"There followed many many weeks of phone calls not returned, e mails not sent by them, me continuously harassing them to find out what was happening."

After many more calls and e mails Liz finally discovered in October that the case had apparently been closed, but she says no one bothered to notify her until she asked.  Then, when she came to renew her insurance the next month, she discovered that the case was still on her file and was likely to affect her premium.  Liz is angry because she feels her insurer was too ready to leave it to her to clear her name:

"I thought that paying a premium for my insurance meant any instance such as this would be dealt with by them."

In the end the case was closed, when the other party withdrew the claim and that Liz was able to renew her insurance without her premium being affected.  Aviva has apologised to Liz for its handling of her case: "We are sorry that this mistake happened and that Mrs Tunmer was not updated as regularly as she should have been during the claim process. In this instance, the handling of the claim fell below our usual standards."

Customer commitment

Endsleigh says it appreciated that Liz had experienced a period of uncertainty, but incidents like this were uncommon.

"As an insurance provider we are committed to working with our customers wherever we can.

"As we did with Mrs Tunmer, we will ensure that we represent our customers for as long as our partner relationships allow and even then, we will continue to work behind the scenes on our customer's behalf."

Like Liz, Pamela is worried what sort of affect this could have on her premium.

Disclosure important

Malcolm Tarling from the Association of British Insurers says drivers should mention this sort of allegation if they change insurer, but if they are not fault they should not be penalised: "If someone has been misidentified as being involved in an accident and it's subsequently been shown they were not involved, that's not something that will worry a new insurer."

The ABI admits these sorts of allegations are not normally shared between insurers.

It advises drivers who receive this sort of notification to check their vehicle carefully to see if there is any evidence of damage.

from BBC News http://www.bbc.co.uk/news/business-12137870

The government is to tighten up the rules that allow councils to seize empty homes, claiming the current system, introduced under Labour, infringes civil liberties.

Local authorities will have to wait two years before attempting to take charge of an empty property, instead of the present six months, and they will only be able to seize buildings that are run-down "vandal magnets".

Eric Pickles, the communities secretary, said he was protecting the "fundamental human right" to property, citing cases where people have had their homes seized when visiting sick relatives abroad for extended periods. But charities claimed the move would deter councils from reclaiming empty buildings to house homeless families.

A Guardian investigation established there are as many as 450,000 long-term empty homes in Britain, prompting calls for more to be used to ease waiting lists.

Pickles said: "There is a case for action to put boarded up and blighted properties back into use. But these draconian state powers have allowed councils to seize private homes in perfect condition, including their fixtures and fittings, just because the homes have been empty for a short while. The coalition government is standing up for the civil liberties of law-abiding citizens. People suffering the loss of a loved one should not have to endure the added indignity of having their home seized because of a delay in them deciding what to do with it.."

The rules will alter empty dwelling management orders, which were introduced by Labour in 2006 to give councils powers to take over properties that have been empty for as little as six months.

Under the existing rules, homes do not have to be in disrepair. The changes will mean that only properties that have become "magnets for vandalism, squatters and other forms of antisocial behaviour, blighting the local neighbourhood" will be targeted, a spokesman said.

A property will have to stand empty for at least two years and owners will have to be given at least three months' notice before the order can be issued.

David Ireland, the chief executive of independent charity Empty Homes, said: "There have only ever been 44 empty dwelling management orders. We don't believe that lots of people's civil liberties have been trampled on.

"This will limit councils' abilities to deal with empty homes. In particular, we are worried about orders on whole blocks of new-build flats that have been developed faster than the market could absorb. Under these restrictions about disrepair, they wouldn't be able to do so."

Caroline Flint, the shadow communities secretary, said so few orders had been issued because they had acted as a deterrent to encourage owners to deal with empty properties themselves.

She said: "Disused properties are an eyesore, a magnet for antisocial behaviour and a waste of a valuable resource"

The government has also introduced incentives to bring properties back into use through a homes bonus, under which the government will match the council tax raised from any empty property which it hopes will encourage the refurbishment of 300,000 homes.

from guardian.co.uk http://www.guardian.co.uk/uk/2011/jan/06/empty-houses-rule-change

Fewer than half of those who use price comparison websites are satisfied with the service provided, according to a consumer group's poll.  The 46% satisfaction rating is 2% lower than a previous poll in September 2009, the survey by Which? found.  The websites are used by consumers to compare a range of financial products, such as insurance and energy.

Three-quarters of the 1,703 people polled used such websites, with half taking out a product through them.  Others went back to the provider to buy the product rather than clicking through the comparison website.

There was still some suspicion that these websites only included products that made them the most commission, rather than what was best for the customer.

"Comparison websites are part and parcel of renewing insurance or finding new financial products, so they really need to do a better job at keeping their customers happy," said Peter Vicary-Smith, Which? chief executive.

23.12.2010from BBC News http://www.bbc.co.uk/news/business-12062834

Money worries can mount at Christmas if people ignore their insurance cover, according to the financial ombudsman.

Issues surrounding insurance dominate a list of festive tips from the service which deals with complaints that cannot be settled between consumers and insurers.  Advice includes checking insurance policies for cover about high-value gifts and Christmas accidents.  About a million people a year go to the ombudsman to settle financial disputes.

The seasonal tips include:

Ensuring high-value presents are covered by contents insurance in case they are stolen or damaged before Christmas

• Taking car keys from a car when de-icing - as theft might not be covered if they are left in the ignition
• Checking travel insurance for details of cover before a Christmas getaway
• Ensuring presents and food shopping are not left in full view in a vehicle
• Checking contents insurance if taking an extended Christmas break, as some have a time-limit on an empty home
• Finding out if accidental damage such as breakages and spillages are only available as add-ons to policies

Other tips including checking deadlines for interest-free credit, and keeping an eye on regular payments which might be forgotten during the festive period.

22.12.2010 from BBC News http://www.bbc.co.uk/news/business-12061435

From early 2011 a new scheme is being introduced to make sure that all vehicles stay insured or a Statutory Off Road Notification (SORN) is made. The Driver and Vehicle Licensing Agency (DVLA) and the Motor Insurers’ Bureau (MIB) are working together to reduce the number of uninsured drivers. 

Latest public estimates are that around 1.5 million of all UK motorists drive uninsured. These drivers cost the UK about £500 million annually, which adds up to an average cost of an extra £30 per car insurance policy.

The police already seize about 500 uninsured vehicles every day. To help combat uninsured driving even further, when the new law is introduced it will result in:

• fines
• prosecutions
• clamping of uninsured vehicles that have not declared Statutory Off Road Notification (SORN)

Records held by DVLA will be compared with those on the Motor Insurance Database (MID).

From early 2011, if it appears from the database comparison that a vehicle has no insurance or no SORN, a letter will be sent to the registered keeper.

If the keeper takes no action, the keeper faces:

• a fixed penalty fine of £100
• court prosecution and be fined up to £1,000
• having the vehicle clamped, seized and destroyed

13.12.2010 from direct.gov.uk http://www.direct.gov.uk/en/Motoring/OwningAVehicle/Motorinsurance/DG_186696

Some motorists who fit winter tyres to their car to cope with snow are being charged higher insurance premiums, it has been claimed.  AA Insurance Services says some people have been told to pay up to 20% more.  Winter tyres should be much safer in the snow, but some insurers have been counting them as a modification to the manufacturer's specifications.  The Association of British Insurers (ABI) says that is a mistake and premiums should not be higher.

The AA's Ian Crowder said in some cases insurers were even refusing to offer cover if winter tyres were fitted.  The mistake is being blamed on insurance company call centres, where not all staff may be aware of the safety implications.  Over the last few weeks of wintry weather, winter, or snow tyres, have proved more popular than ever before.  One supplier, Kwik Fit, says it has already sold 50,000 of them this year, compared with 2,000 last year.  And it is warning that many retailers have now sold out of the standard sizes.  The tyres provide improved performance on snow and ice.  Once the temperature falls below seven degrees Celsius, standard tyres tend to harden up, reducing their grip.  But winter tyres contain a higher proportion of natural rubber and silica, which keeps them more pliable in cold weather.

In tests conducted by the British Tyre Manufacturers Association, a car braking at 60mph in wet conditions has a five metre shorter braking distance if it has winter tyres fitted.  "There's a very, very, strong argument that people in the UK should fit winter tyres for the four to five months of the autumn and winter," says Clare Simpson, of the RoadSafe organisation. 

Many other European countries have legislation that compels motorists to fit winter tyres in certain conditions.  They include Austria, parts of Germany and countries in Scandinavia.  But in practice, having a set of winter tyres means having a separate set of wheels, which can be expensive, and you have to have somewhere to store the wheels as well.

The ABI said providing tyres are fitted by a reputable garage, and in accordance with the manufacturer's instructions, motorists should not be charged a higher premium. 

 11.12.2010 from BBC News http://www.bbc.co.uk/news/business-11969958

Buy to let insurance: Landlords forced to improve energy efficiency 

Buy to let insurance policyholders have been told that under new government proposals Landlords will be responsible for improving the energy efficiency ratings of their properties,

Energy and climate change secretary Chris Huhne yesterday announced “The Green Deal”, which will see landlords receive finance from approved providers in order to upgrade the energy-saving measures in their properties, such as double-glazed windows, cavity wall insulation and new-generation boilers.

The forthcoming Energy Bill will also give tenants the power to request that reasonable efficiency measures are installed in their homes from 2015 onwards, and will allow local authorities to demand that poor-performing properties are improved.

Mr Huhne said: "The Green Deal’s about making people feel as warm as toast in their homes. I want Britain to say goodbye forever to leaky lofts and chilly draughts. At a time of increasing gas prices energy efficiency is a no-brainer."

03.11.2010

Bonfire night generates the highest number of home insurance claims of any night of the year. Millions of us leave our homes and vehicles at risk, both of burglary and damage by fireworks or are not aware of the insurance risks of hosting a party and lighting fireworks. 

If you think the risk to insurance is exaggerated at this time of year here are some startling numbers that may lead you to think again. 

According to research carried out this October and published by Santander this week, three per cent of homeowners have had their property damaged by stray fireworks and more than two per cent of Brits have been violently attacked by people using fireworks as weapons. 

Further research from Aviva shows that burglars see bonfire night as an opportunity to break in to people's homes. Burglaries show an increase of 26 per cent compared to an average day and car thefts increase by 25 per cent. 

November has the second highest number of fire claims, beaten only by December when the nation attempts to wire their homes up with Christmas lights.  Also the run up to Christmas is seen by burglars as a bumper period with many families buying expensive gifts for one another conveniently left on display beneath the festive tree.  Opportunist theft from vehicles in shopping car parks is also rife during this time with thieves rifling cars looking for presents. 

03.11.2010

15% of UK Drivers Uninsured 

Despite the UK having one of the highest numbers of surveillance cameras and CCTV in the world and it’s Police force utilising state of the art Number Plate Recognition Software linked to the Motor Insurers Database, driving without insurance is still rife on our roads with many people knowingly driving illegally. 

moneysupermarket.com has found that around 15% of motorists have driven illegally without car insurance, either by driving their own or a friends vehicle.  2% admit to having driven their own car uninsured in between renewing their insurance policy.  Of those who admit to driving uninsured, 36% claim they didn’t know they needed insurance when behind the wheel and some 12% haven’t got round to renewing their policy.  8% simply say they can’t afford cover and 7% think that they do not need car insurance as they are not going to have an accident!   

No matter how well somebody thinks they can drive it is an offence under the Road Traffic Act to drive a motor vehicle on the highway without a valid certificate of insurance in force.  If they are involved in an accident and they don’t have insurance, they could face thousands of pounds in liability, a conviction including six points on their license as well as charges up to £5,000. 

02.11.2010

Young drivers and a surge in fraudulent claims are key factors behind the steep increase in motor insurance premiums which threaten to drive many motorists off the road.

In the 12 months to September, comprehensive premiums increased by an unprecedented 39%.  For third party fire and theft policies, which is the most cover that many younger, riskier drivers can afford the increase is nearly 55%. 

Young drivers face the stiffest increases simply because they generate so many claims.  Even middle aged drivers over the age of 40 have seen a 30 per cent surge in premiums and it is thought that this is partly due to many parents extending their policies to cover their children.  Some engage in the fraudulent practice of “fronting” which means that the young persons vehicle is insured in the name of a less riskier family member or acquaintance (usually a parent) in and effort to obtain a cheaper premium. 

This situation has been intensified by price comparison sites which have driven premiums so low that many insurers have simply lost money on car insurance.  Today on average, insurers pay out £1.23p in claims for every £1.00 received in premium.   

Meanwhile, few can predict when the bill for settling personal injury claims will level off as “no-win, no-fee” lawyers seek out accident victims to pursue their claims. It is estimated that 30,000 fraudulent claims are paid out each year which adds an average of around £80 to the cost of each policy. 

02.11.2010

A recent study has shown that over a fifth of homes in the UK are uninsured.  The research found that 42% of those questioned did not have home insurance cover as they thought that they couldn’t afford it.  22% of people did not consider home insurance important, while 18% thought that their possessions were not worth insuring. 

Britain’s current financial woes are causing home owners to have sleepless nights as the study found that 26% of people are not confident they are able to pay their monthly outgoings, with two thirds of respondents admitting that they are worried about money. 

Financial worries seems to be the main factor in homeowners failing to take out home insurance policies, however experts warn that saving on cover could be a false economy should the property fall victim to burglary or fire as they’ll be left be left to pick up the full bill for possessions stolen or damaged. 

26.10.2010

Martyn Hocking, editor of Which? Money, has been reported as saying: "With such an array of financial products to choose from, it can be tempting to turn to a price comparison site to do the legwork for you. But you might be very confused to find that different sites can give you vastly different quotes and often don’t give enough information for you to make an informed choice".

20.08.2008