According to the ABI, insurers are uncovering a growing number of cases of “front end fraud”, where the customer has lied or failed to disclose material information to get cheaper insurance.
Common deceptions include under-estimating alcohol and tobacco consumption when applying for life and health insurance and forgetting about previous claims, such as motor accidents and burglaries.
ABI director of general insurance and health Nick Starling says: “Honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences. Being truthful and shopping around will mean that your insurance delivers when you need it, and that you get the best possible deal.”