Insurance fraud is now estimated to cost insurers £5.2million every day, according to a report published by the Association of British Insurers.
But the figures released by ABI show that insurers are now fighting back against fraudulent claims with £730million of frauds being detected and prevented last year, which is a 30 per cent increase on 2007.
Many fraudulent claims though are still going undetected costing insurers £1.9 billion, this is a 24 per cent rise compared to £1.6billion two years ago.
As a result of these fraudulent claims, every household’s general insurance costs have risen by £44.