UK Government and industry fail to reach flood insurance deal
The Association of British Insurers (ABI) and the UK Government have failed to secure a new agreement over the insurance of homes and businesses at high risk of flooding. The insurance industry and government have been locked in talks for months over the future of flood cover as the existing agreement runs out in June 2013. The current agreement obliges insurers to offer flood insurance as part of standard policies at reasonable rates, providing the government invests in flood defenses.
Massive UK auto insurance scam uncovered
The police have linked 60 people with one of the biggest fraudulent auto insurance claim programmes in the United Kingdom. The scam was so extensive that Durham County area premiums were inflated due to the increased risk profile of the area.
The investigation examined 1 800 claims handled by two firms. Twohundred and sixty- one were flagged as suspicious, with suspicions of fictitious, staged and greatly exaggerated claim incidents. The investigation revealed £3 million (R41 million) in fraudulent payouts.