Figures released by the trade body today reveal its members are recording 2,000 fraudulent insurance claims every week, worth £14m.
ABI figures show that in 2008 107,000 fraudulent insurance claims were exposed, a rise of 17 per cent on 2007. The value of these claims, £730m, rose by 30 per cent on the previous year.
Dishonest claims on home insurance were the most common, with 55,000 false or exaggerated claims detected. By value, fraudulent motor insurance claims were the highest, with £360m saved.
The research found one in five people would still be tempted to cheat on their insurance, despite the likelihood of being caught, facing trouble in obtaining financial products in the future and getting a criminal record.
ABI director of general insurance and health Nick Starling says: “Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats. Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.
“Cheating on your insurance really does not pay – you will get caught, future insurance will be more expensive and, along with credit, harder to obtain. The only thing you are likely to gain is a criminal record.”