Insurance, Fuel And Personal Finance In The UK Following Recent World Catastrophes
Following the increase in UK terrorist activities and the catastrophe that has hit New Orleans, it seems we are all going to have to foot the bill. The total cost of the catastrophe is currently predicted to top $25 billion (£13.6bn), however many analysts predict that the full costs could rise much higher even doubling to $50bn (£27.2bn), although with attempts to reduce the flood waters expected to take several months, it will be some time before a clear picture emerges.
Here in the UK, the effects of the disaster in the US are already starting to be felt through higher costs at the petrol pumps, as European reserves of oil which have been set aside for disaster protection are redirected to America to help their recovery efforts. Oil prices have already been rising in recent months hitting record levels as traders have pushed the price up on fears of supply problems from the Middle East as terrorism worries have grown. Last week the wholesale price of petrol charged by suppliers rose again due to hurricane Katrina and retailers say that more increases are on the way, making the £1 a litre that is being experienced in some areas inevitable across the country. Royal Dutch Shell and BP have already announced that they are set to raise prices still further in the wake of hurricane Katrina. While US motorists have to cope with fuel prices now at a record $3 a gallon, the research group Catalist has found that the average price of a litre of unleaded petrol in the UK was now 92.3p.
Ray Hollaway of the Petrol Retailers Association said, "In the coming week we are going to see increases of 3p or 4p a litre. That's unavoidable because of what happened in the US...We have to accept that the days of 80p a litre are behind us.”
In addition to the actual cost of supplying fuel in the UK, the costs to consumers is further being exacerbated by the governments refusal to reduce taxation levels, and as the oil companies are to spend millions of pounds ahead of all previous expectations, upgrading UK pumps and station forecourts, to technically enable them to charge higher prices as prices spiral beyond the £1 a litre mark.
Analysts are worried that the increases in fuel prices will lead to inflation rises and decreased public spending, as suppliers transport costs increase, and experience has shown that petrol price hikes do not lead to a significant reduction in public fuel demands, but rather it leads to consumers cutting back their spending in other areas causing a slowdown in the economy.
The insurance costs of recent events have caused huge additional expenses to the insurance companies. The impact of Katrina on companies operating onshore and offshore in the Gulf of Mexico has meant that insurers such as Lloyds may be hit fairly hard, with the bill for the Lloyd's market being tentatively placed at around £1bn to £2bn. Lloyds stated that the, “terror attacks in London have had a big human cost, but our analysis suggests that the economic costs may be quite low.” Despite Lloyds’ claims that the effect of the London bombings has cost them relatively little financially, in light of expected future attacks and calls for terrorist activity exclusions to be scrapped, it seems likely that premium increases will be gradually introduced.
Since Katrina, and the Asian tsunami which struck at Christmas, many insurers are becoming worried about the rising costs of the increasing number of serious weather related incidences. As a consequence of the insurance payouts for the devastation and carnage wrought in Asia and by hurricane Katrina, many analysts believe it is inevitable that businesses will also face huge rises in premiums down the line. The Association of British Insurers (ABI) issued a recent report stating that, “in the UK, climate change could increase the annual costs of flooding by almost 15-fold by the 2080s under the high emissions scenario, leading to potential total losses from river, coastal and urban flooding of more than $40bn (£22bn).”
The ABI ( http://www.abi.org.uk/ ) also released research findings indicating that less than 50% of small UK firms have a plan in place to ensure that their business could survive should they be hit by an emergency or disaster, and only 50% of UK households possess any life insurance with 25% of mortgage holders actually have insufficient life insurance to cover their debt therefore placing their home at risk.
With UK personal debt over £1 trillion, decreasing levels of investment through products such as individual savings accounts (ISAs), it is perhaps understandable that many see insurance protection policies as being one of the first expenses that can be put off until money is more plentiful, however it is at these times when finances are tight that these financial products are most important.
The growth of financial services such as UK based Moneynet ( http://www.moneynet.co.uk ), eSure.com, and Confused.com combined with the proliferation of financial information provided by the likes of Which?, the Financial Times and the BBC, has helped to increase competition between insurance providers and assisted in keeping prices down. However the current outlook seems to be that prices are going to rise, but by how much is unknown until the full effect of recent events is calculated. The only thing that is certain is that it no longer matters where the disaster happens, in the end the UK consumer will eventually have to pay.
About the Author:
Richard lives in Edinburgh, occasionally writing for the personal finance blog Cashzilla ( http://cashzilla.blogspot.com/ ), and likes the surrealist means of expression. Fish.
Ethical Finance: Who Benefits From Our Spending?
On one hand consumers are being universally criticised for running up significant amounts of debt on credit cards, yet conversely many companies are capitalising on the growing credit card debt, from charities and political organisations to football clubs, the Association of Surgeons and somewhat ironically ActionAid, an international development agency whose aim is to fight poverty worldwide.
Financial comparison site moneynet.co.uk provided 226 credit cards in a general credit card search, from which the consumer could choose a product to suit their lifestyle, as well as their wallet. Credit cards with charity branding involve many major organisations including Amnesty International, Christian Aid, WaterAid, RSPB, Save The Children, the Ramblers Association, Oxfam, Greenpeace, the Vegetarian Society, RSPCA, ActionAid, Children In Crisis, Help The Aged, Tearfund and the Terence Higgins Trust.
Perhaps it is fair to say that if people are going to spend on plastic, they should be helping charitable organisations on the way and should they feel inclined to contribute to a political institution, donating a small % of each transaction is a convenient method. If most consumers were ethical spenders, then associations between transactions and third party beneficiaries would inherit this quality, but as debt spirals out of control, is it responsible or ethical that someone should benefit at the cost of someone else?
Although it is standard for most card providers to offer an introductory free period, the consumer may be hit by a more substantial annual percentage rate (APR) later on the year, with some providers, such as ASDA charging a massive APR of 28.8%. Even ActionAid charges an APR of 17.9%, rescuing the developing world at the expense of the developed.
About the Author:
For further information about credit cards and details on specific providers: http://www.moneynet.co.uk/ http://www.eiris.org/ http://www.creditaction.org.uk/ http://www.moneybasics.co.uk/mb/site/Home.html Rachel writes for Cashzilla, the personal finance blog: http://www.cashzilla.co.uk/ Rachel drinks Guinness.
Instant Loans Cash- Keeps Finance In Order Till The Next Financial Replenishment
There is a tendency among people to keep their resources in a form that is not easily cash convertible. The arrangement holds good till the individual is faced with an exigency involving cash. This is the time when the individual is led into a tight spot; with little hope from ones own personal resources because they will take time to be converted into a liquid state. Instant loans in cash form will be the need of the time.
Instant loan for cash is also useful for individuals who have already finished their monthly paycheque and need an immediate cash replenishment to meet several expenses that demand an instant fulfillment.
So what is an instant loan for cash? Isn’t this the question that is bothering your mind? If yes, then the following article will be very informative for you.
Instant cash loan is a loan, with the loan provider and the borrower forming the two parties to the loan contract. With this, the similarity of instant loans cash ends with the regular loans.
Most of the regular loans are taken in order to avail of larger resources. Secured loans, for instance put thousands of pounds in the hands of the borrower. Similar is the case with car loans, education loans and bridging loans. Instant loans cash on the other hand are taken for comparatively smaller amounts. Instant loans cash are more similar to payday loans where the amount drawn is to be used for regular small expenses.
It is also because of the minor amount involved that the fast loan in the UK is approved immediately and without much hassles. The instantaneous approval is what gives instant loan cash a distinct status. Borrowers are promised the fast loan in the UK within 24 hours. This means that they can expect a credit to their bank account by the next day of application. This is the method by which the proceeds of instant loan cash are received. It also forms a part of the eligibility criteria expressly stated by the loan providers. Other qualifying criteria for instant loan cash includes:
• The loan borrower must be employed.
• Remuneration received from the employment must be deposited directly into a bank account of the borrower.
It will be important to discuss with the loan provider chosen up to what time will the fast loan be approved and sanctioned. Though applications for instant loans cash are available 24 hours through an online website, applications made up to a certain time period may only be considered during a day. If you know what is the time till which applications are considered for approval during a day, you can easily time your application.
Another distinct feature of instant loans cash is that the repayment term is small. Like in a short-term loan, one needs to repay the instant loans cash in a very small period. This may be a week, a month or a maximum of six months till which borrowers are given extension in repayment terms. This may however, differ with lenders. Some lenders are ready to increase the term of repayment when the borrower is facing certain exigencies. A shorter repayment term will be viewed as advantageous by some people who feel that paying off the fast loan UK early will be better than bearing the burden for several years.
The downside to instant loans cash is the high rate of interest that it carries. Whatever you thought to gain from a shorter term of repayment is eroded through the high rate of interest. Being a short-term loan, the higher rate of interest is no rarity. It is expected. The best method to keep the interest cost in check will be to repay it as soon as possible. If managed well, instant loans cash can help one tread through temporary periods of financial shortage as no other methods can.
About the Author:
Andrew baker has done his masters in finance from CPIT.He is engaged in providing free,professional,and independent advice to the residents of the UK.He works for the Secured loan web site loans fiesta for any type of loans in uk,secured loans,unsecured loans,debt consolidation loans please visit http://www.loansfiesta.co.uk
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