Many people admit they would consider making a fraudulent insurance claim in the future and seven per cent say they have already lodged one, research revealed today.

The Association of British Insurers said 47 per cent of people said they would not rule out submitting a false claim.

In the survey 40 per cent said they think it's acceptable to exaggerate the value of a claim and 29 per cent think its all right to make one up completely.

The research comes as insurers step up their efforts to catch fraudsters with measures ranging from setting up an industry-wide fraud data base to training front-line staff to spot inconsistencies in claims.

The ABI estimates fraud on home and motor insurance costs the industry more than £1 billion a year.