Insurance providers discover over £1 million worth of insurance fraud every day, new figures have indicated.
Statistics from the Association of British Insurers (ABI) have also suggested that one in 11 claims are in some way fraudulent, with the most common example of the illegal activity being the exaggeration of value of a genuine loss.
The director of general insurance and health at the ABI, Nick Starling, stated that the premiums paid by honest customers are increased through the actions of fraudsters, but noted that the industry is "fighting back".
"Insurance cheats are more likely to be caught than ever before. And cheats will pay a high price as future insurance and credit will be more expensive and harder to obtain," he said.
Earlier this month, the ABI stated that 35 per cent of people from lowest-income houses (less than £10,000 per year) have no insurance policies in place.
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