Welcome to our October newsletter! In this edition; Insurance Premium Tax set to rise to 10%, Europol reveal the most dangerous cybercrimes, winter life hacks to cut your energy bills and finally, how the average UK car insurance bill has risen 13% over the past year. 

Until next time,

West Craven Insurance

As a part of the Government’s 2016 Budget, Insurance Premium Tax (IPT) is set to rise by 0.5%, changing the rate from 9.5% to 10%.

The Government has specified that the income generated by the rise in IPT will be put towards funding flood defence and resilience.

What is IPT?
IPT is a tax levied on certain insurance policies (Pet, Mobile, Car, Building, Contents & PMI) which is usually passed on to the consumer through the price of their policy. The government predicts this will lead to a rise of between &1-&2 on the average policy.

Who will this affect?
All Insurance Brokers and Insurance Providers who sell non-exempt insurance policies will be affected by the raise, as will all households and businesses purchasing non-exempt insurance.

How will 0.5% make an impact?
By 2021 the raise in IPT is expected to have generated an extra &210 million, all in the aid of improving flood defences, an issue that the government has been under fire for in recent years.

Economic impact?
The government does not believe the rise will have a negative impact on any providers, brokers or customers, however this remains to be seen.

 Europol has released a list of the eight most dangerous and increasingly popular cybercrimes that currently pose a threat to businesses and private citizens around the world.

The 2016 Internet Organised Crime Threat Assessment report set out what the eight biggest threats are and outlined how criminals are looking to exploit them further.

The eight threats are:
• Ransomware,
• Crime-as-a-service
• Data theft and misuse
• Payment fraud
• Online sexual exploitation
• Abuse of the Dark Net
• Phishing
• Use of virtual currencies for illegal purchases

Europol singled out the Dark Net as being a hot bed for some of the worst content and criminal abuses.

In the report, Europol says: “The Dark Net continues to enable criminals involved in a range of illicit activities, such as the exchange of child sexual exploitation material.”

“The extent to which extremist groups currently use cyber techniques to conduct attacks are limited, but the availability of cyber crime tools and services, and illicit commodities such as firearms, on the Dark Net provides opportunity for this to change.”

Phishing scams aimed at CEO’s are also becoming more and more common. The target will receive an email that tricks them into handing over personal details like passwords and bank account details. The email will usually be a fake from a well-known company like PayPal or HMRC.

“In 2015, law enforcement across Europe reported a number of attacks on critical infrastructures which often included unsophisticated methods such as SQL injections and cross-site scripting but also APT-type attacks,” the report said.

Despite the constant negative news on the current state of cyber crime, Europol did praise global initiatives to curb cyber criminals.

“Locally and internationally, law enforcement agencies are finding new ways to efficiently collaborate on investigations involving the internet across borders and jurisdictions,” the report said.

"There has also been significant change in the engagement with the private sector to share information and collaborate with private industry organisations."

Europol have stated that the media reporting on failed attempts and captured cybercriminals helps to shift the idea the cyber crime is masterminded by unbeatable and unknowable threats into one that shows them as being a human criminal.

Businesses must continue to stay up to date on the latest cyber security if they hope to remain protected from this constantly evolving threat.

 The winter months are beginning to draw in which means you might soon be seeing an increase in your heating and energy bills, especially if your home is not quite up to scratch.

1. Upgrade/service the boiler
It’s better to deal with this one now before it gets colder. That old gas boiler you’ve got ticking away could be costing you more money than it’s worth and might not be doing the same effective job it was doing in the 80’s. Getting it serviced (or replaced!) could save you money, energy and could save you from carbon monoxide poisoning.

2. Exclude those draughts!
You probably don’t even notice a draught during the summer months, in fact you’re probably grateful for bit of cold air! During the winter months however, that draught will seriously contribute to lower temperatures in your home. Make sure you get some draught excluders for the offending doors and windows. If your chimney is decorative, it’s also worth buying a specialist draught excluder to stop the hot air escaping and the cold air rushing in.

3. Bleed the radiators!
Many of us rely on our radiators as the main source of heat during the winter months. So it makes sense that you should ensure they’re all in tip top condition. If they feel colder at the top than they do at the bottom, then they need to be bled. Grab the key and a towel and get cracking! Your home will be toasty in no time.

4. Protect your pipes
We’ve all read the horror stories about pipes bursting on Christmas day, ruining the day for families. Protect yourself from this disaster by surrounding your pipes in a foam coat known as “lagging”.

5. Double check your energy provider
You might be able to find a better deal if you shop around for an energy provider. Less money spent on heating, more money for spending on hot chocolate and thick woolly cardigans.
Policies includes a comprehensive list of covers that would normally come as an extra or add on, meaning you can relax with peace of mind this winter.
 

The average UK car insurance bill has risen by 13% over the last year due to a number of costly claims.

Thanks to the new technology that cars now carry like cameras, traffic sensors and on board sat navs, the cost of getting our vehicles repaired has risen considerably.

Consumer Intelligence, a market research agency specialising in insurance and banking, said the average UK motor premium now stands at &788, which represented a price rise of 13.5% in the year to August.

The amount a driver pays on their insurance premiums still seems to be directly connected to their age. Younger drivers continue to pay the largest insurance premiums, with the average Under-25 paying a premium of &1,831, however their insurance rates rise far slower than other age brackets. Older driver continue to see the higher yearly rises in their insurance, with rises of 15.3% each year, however their premiums are far lower at &348.

If this wasn’t all bad enough, consumers now have to contend with an Insurance Premium Tax hike. The government believes that the average policy will see a &2 rise. Ian Hughes, chief executive of Consumer Intelligence, said: “The latest increase in insurance premium tax which takes effect next month, as well as rising claims, are driving the rise in premiums.”