Insurance News Round-up: The month’s most interesting insurance stories

AirfrostNever heard of Air Frost? Well you’re probably paying for it!

Research has found that car insurance companies face 1,000 extra claims every time the UK is hit by ‘air frost’. The expensive meteorological phenomenon happens when the air temperature one meter above ground drops below the freezing. Air Frost is responsible for a number of driving hazards, including black ice and impaired visibility due to frozen windows, and costs insurers a whopping £1.3 million every day it hits.

Do you feel bullied into buying insurance?

Turn on the television, tune in the radio, or open a newspaper, and you’re soon assailed by adverts for insurance companies. Admittedly it hardly amounts to bullying, but nevertheless there’s something wry in the announcement that one insurer is now offering insurance against bullying. The firm based in South Korea will provide cover to institutions and payments will go towards counselling and medical bills. Recently there have been a number of high profile corporate bullying cases in South Korea, while last year more than 77,000 school students said they had been bullied.

Callous hit-and-run driver made insurance claim for damage to car

A motorist from Birmingham has been jailed for four years and nine months after fatally injuring a father-of-four who was crossing the road. The heartless motorist drove away from the incident with a broken windscreen and later tried to make a claim on his wife’s insurance. The driver had no licence and no insurance, and questions have been raised over the length of the prison sentence.

Q: When is insurance not insurance?  A: When it’s National Insurance

Fathered by the formidable Lloyd George in 1911 National Insurance was originally intended to insure against illness and unemployment. However, as most people know these days’ contributions are just added to the general taxation pot.  In the interests of transparency the MP for Ipswich, Ben Gummer, has proposed National Insurance is renamed ‘Earnings Tax,’ stating “It walks like a tax, it quacks like a tax and we should call it a tax.” Much to the surprise of the media the Chancellor has signalled approval, and with the budget just weeks away, we could soon wave goodbye to the 100 year-old ‘insurance scheme’.

Internet giants could become financial services providers

Research by a leading firm of management consultants has revealed that most people would trust online titans, such as Google, PayPal and Amazon, with their banking. Accenture surveyed 6,000 consumers and found that 67% would consider buying insurance from companies that weren’t insurers. When asked to identify the key motivating factors: 87% cited cheaper premiums and 80% cited a more personalised service. So we are looking for a giant with a personal touch, now that does sound like a fairytale.

 


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