Almost 50% of insurance policyholders would consider making a false insurance claim and 7% already have, according to research from the Association of British Insurers (ABI).

Honest policyholders...end up paying for fraudulent claims Debra Weekes, ABI

The ABI estimated fraud on home and motor insurance costs the industry £1bn a year.

It is now introducing an electronic database to alert insurers to policyholders who have a history of making multiple claims, or who have taken out more than one policy on their car or home.

"Insurers are raising their game," said Debra Weekes, ABI's head of crime prevention.

Catching up

The ABI suggested 47% of people would not rule out submitting a false claim and 40% considered it acceptable to exaggerate the value of a genuine claim.

The insurance association also suggested 7% of policyholders have already lodged a false insurance claim, while 29% think it's okay to invent one completely.

ABI's research came along with measures to increase efforts to catch fraudsters, including more 'front-line staff' to spot inconsistencies in claims.

"Insurers are making it much more difficult for insurance cheats to get away with this crime," said Ms Weekes.

She added: "The majority of claims are genuine, and insurers are determined to protect honest policyholders, who end up paying for fraudulent claims."