The ABI has reported that fraudulent insurance claims in 2008 rose 17%.

Around 2,000 fraudulent insurance claims – worth £14 million – are being filed every week in response to the UK recession, according to the Association of British Insurers (ABI).

The number of falsified claims has reached record levels. In 2008, 107,000 such claims were discovered – a rise of 17% on the previous year, while the value of the claims, £730m, rose by 30%.

The ABI attributed the rise to the recession, a period in which it claimed “fraud thrives”. The most common claims, up to 55,000, were made on home insurance, while those worth the highest value – £360m – were made on motor insurance.

Anyone caught making fraudulent claims could have difficulties buying items in the future, and could receive a criminal record. Despite this, ABI research has found that one in five adults would still consider making a dishonest claim.

Nick Starling, ABI’s Director of General Insurance and Health, warned the public: “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.”

The ABI acts as the voice of the insurance industry and represents 90% of the UK insurers, which is the second largest market in the world, and 20% of the European market.

Its aim for the next three years, given the current economic crisis, is to build consumer confidence.