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Chase Bank Limits Cash Withdrawals, Bans International... Before you read this report, remember to sign up to http://pennystockpaycheck.com for 100% free stock alerts Chase Bank has moved to limit cash withdrawals while banning business customers from sending...

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Richemont chairman Johann Rupert to take 'grey gap... Billionaire 62-year-old to take 12 months off from Cartier and Montblanc luxury goods groupRichemont's chairman and founder Johann Rupert is to take a year off from September, leaving management of the...

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Spate of recent shock departures by 50-something CEOs While the rising financial rewards of running a modern multinational have been well publicised, executive recruiters say the pressures of the job have also been ratcheted upOn approaching his 60th birthday...

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UK Uncut loses legal challenge over Goldman Sachs tax... While judge agreed the deal was 'not a glorious episode in the history of the Revenue', he ruled it was not unlawfulCampaign group UK Uncut Legal Action has lost its high court challenge over the legality...

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Insurer RSA’s staggering error

Category : Business

RSA claims exaggerated expenses claims cost UK £27.7bn last year – but the insurer’s methodology was utter rubbish

Ping! It’s an email from RSA, the large insurer, carrying the revelation that “exaggerated expense claims cost UK businesses a staggering £27.7bn last year”.

It’s utter rubbish, of course. The only staggering aspect is the basic error in RSA’s methodology. Having been told by its pollsters that 53% of workers with expense accounts fiddle their claims by £1,768 on average (a deeply dodgy statistic in itself, one suspects), RSA then assumed the entire working population of 29.2m is able to file expenses. That’s how it got to the rounded figure of £27.7bn – 53% of 29.2m multiplied by £1,768.

But not every employee can claim expenses. Indeed, probably only a small minority can.

RSA later withdrew the £27.7bn figure but even its reworked press release waffled on about “increasingly dishonest employees” raiding the company coffers and having “a major impact” on the UK economy. Stop: you’re an insurance company, you’re supposed to employ actuaries.

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