Cash struggles spark boom in underwriting fraud

As the credit crunch wrangles on, insurers are seeing evidence of increasing underwriting fraud, costing honest motor insurance customers between £50 and £60 per policy.

In an attempt to slash the price of motor insurance premiums, people are declaring false information, perhaps unaware that their insurance may be invalid as a consequence.

Simon Warsop, director of motor pricing at Norwich Union, said: "Fortunately, the majority of customers are entirely honest and provide accurate, fully disclose