"Savvy" Britain Easy to Pull the Wool over

NCD News: "Savvy" Britain Easy to Pull the Wool over - 07.12.09

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"Savvy" Britain Easy to Pull the Wool over: >>>> Research from moneysupermarket.com has shown that people living in Scotland experience the lowest insurance premiums in the UK. The analysis of more than 1m insurance quotes showed that 7 out of 10 of the cheapest insurance areas in the UK are in Scotland with Dunfermline and Glenrothes coming in the top spots. Those living in Aberdeen, Dundee and Elgin can expect to pay as much as £500 less than others in the UK for their car insurance. London came in as being the most expensive area for insurance premiums.

>>>> More Than has launched an i-Phone application which can help its customers in the event of a car accident. The Car Claim application takes the user through the steps they should follow to remain safe after an accident and allows them to enter information about the accident and the other car involved. Photos can be taken and the GPS location is stored. All this information can then be sent to an email address to be used in dealings with the insurance company at a later date. This is the first time an insurance company has taken advantage of this type of technology.

>>>> Pension buyout firm Paternoster, looks set to return to the UK market after a period of inactivity after having its "permissions varied" by the FSA. Paternoster is thought to have been offering quotes to companies wanting to sell pension liabilities. They have also been looking into longevity swaps, where the company sells insurance against pension fund members living longer than expected. Prior to its suspension, Paternoster was one of the largest players in the sector.

>>>> Lawyers for those affected by the Buncefield oil depot explosion have said that just 15-20 of the 275 claims have been settled. The explosion took place on December 11, 2005 and 2000 people were forced to abandon their homes. 43 people were injured, but no one lost their life. The owner of the plant, Total have been told they will have a bill of £750m to cover damages claims. Lawyers say that Total have been difficult to deal with and are offering ludicrously small amounts of money as compensation. Total have refuted these claims and say that 92% of the claims have been settled or came under insurance.

>>>> The Sisters of Mercy in Dublin have said they will pay £193m in compensation to children who were victims of physical and mental assault during their time at one of their 5 schools between the 1930's and the 1990's. The abuses came to light in the recent Ryan Report which highlights these types of crimes in Catholic institutions. The level of abuse at the Sisters of Mercy schools was described by the report as creating a "persuasive climate of fear."

>>>> Prudential is the latest provider to pull out of the equity release market. Despite a 23% market share, they expect to stop writing new lifetime mortgages in January. Northern Rock and Retirement Plus have also stopped providing these types of products in recent months. Just 10 providers still remain in the market according to the Daily Mail. A financial advisor with Saga has said that this market should be growing, given the fact that people are now living longer. It is also likely the price of these scheme may now increase due to the lack of competition.

>>>> Shoppers at Tesco can now purchase Friends Provident life insurance and critical illness products via Tesco's website. It will soon be available in store also. The move follows a deal struck between Tesco and Friends Provident back in April.

>>>> Figures released by Aviva show that 46% of people over the age of 55 would like to leave their homes to their children in their wills. This is despite the fact that 39% of their children would rather they use the money to improve their quality of life. 51% of children aged between 35 and 45 say that they rely on inherited wealth for their future financial well-being. This is possibly the same half who assumed that the government will take care of paying for the care of their parents in old age. Aviva also found that 80% of the over 55's questioned in the south east of the UK will leave their properties to their children, yet only 50% of those living in the Northern Ireland would do so.

>>>> The AA has suggested that a new initiative introduced by the Metropolitan Police to tackle "cash for crash" scams, should be used by other forces. The Met have a special unit with trained officers who can spot the signs of a fraudulent crash. The AA point out that these types of crashes and fraudulent claims have increased by 30% this year and the insurance industry is getting better at identifying them. Initiatives such as the one used by the Met Police are welcomed by the insurance industry.

>>>> The AA have also warned those who are planning a skiing holiday this winter to ensure they have sufficient insurance. They point out that being airlifted to hospital or having to be repatriated will all have to be paid by the traveller themselves. The cost of a broken leg could be as much as £10,000 in the US or £4,000 in Europe. AA also warn that these types of holidays are popular, which has led to overcrowding and possibly more accidents as a result.

>>>> Legal & General is now offering discounted premiums on their critical illness cover to people with a history of cancer. Previously cancer claims were often not paid out due to pre-existing conditions or a family history - despite the customer making full payments on the policy. They would effectively only be covered for claims arising from other types of conditions. L&G now offer a discount for people who are excluded from cancer cover, which they see as being more fair. They do point out that people excluded will still be covered for 34 other types of conditions.

>>>> A report released by Defaqto and titled "Web Aggregators 2009: The bubble is about to burst" has investigated more than 60 comparison sites and has found that too much choice is causing confusion for customers. Mike Powell from Defaqto commented that consumers are heavily swayed by advertising and wrongly believe that those which advertise heavily will provide the best results. The whole point of comparison sites is to make it easier to make a choice, he adds, but with more than 70 available sites showing results from 200 possible policies, making a choice is difficult. Go Compare topped the Defaqto motor insurance comparison site list, followed by Tesco.

>>>> British Gas has revealed plans to move into the UK insurance market and hopes to list in the top ten of insurers in the country within 2-3 years. British Gas has a customer base of 4.5m and has been given approval by the FSA to underwrite household items and provide warranties. The company is currently advertising for an underwriting director who will report to the chief executive officer and will be responsible for converting British Gas customers to the new insurance products.

>>>> Reports from the UN Climate Conference have claimed that countries may be close to agreeing on the required cuts to emissions. An agreement does depend on developing countries offering more than their existing proposals, along with support which has been offered by the developed world. The target of 44bn tonnes could be reached with further cuts of just 2bn tonnes of CO2. The ABI has recently suggested that failure to reach these targets could lead to increased insurance premiums around the world due to fall out from climate change.

>>>> Research by LV insurance has revealed that people in the UK will spend £132m on counterfeit goods during the run up to Christmas this year. The insurer spoke to 2308 people and the results showed that 40% of people are more influenced by value than by the origin of their purchase. Every fourth shopper fails to check the authenticity of the seller when purchasing gifts and many end up with stolen or counterfeit goods. The insurer points out that such goods are not covered by insurance should they go wrong. They also warn that deals which look too good to be true, are probably part of the black market.

>>>> Research from Hiscox and reported in the Mail, has revealed that around 2.5m families in the UK who earn £100,000 per year, do not consider themselves to be rich. Hiscox surveyed 1100 professionals who felt that an income of £150,000 would make them feel wealthy. In addition, they would like a second home, a luxury car or a work of art to make them feel wealthy. A Hiscox spokesperson commented that many so-called wealthy people had cut back on spending and exposure to risk, however most of those surveyed did say that money wasn't everything.

>>>> Insurance pioneer, Peter Wood is in talks to buy out Esure from Lloyds Banking Group. He has joined together with Sir George Mathewson from RBS to arrange the financing, but Mathewson is not believed to be personally involved in the deal. Esure is estimated to be worth between £200m and £250m and is chaired by Woods. Esure was originally set up as a joint venture between HBOS and Wood in 2001. Lloyds later inherited 70% of the business when it took over HBOS. Woods currently owns 24% of the shares, but has legal control. Woods has complained that Lloyds give the impression they fully own the insurance company. †