Dyman Associates Insurance Group of Companies

Insurers have exposed a record £1.3bn worth of fraudulent claims last year as the industry stepped up its war on cheats.

The amount, released by the Association of British Insurers (ABI), marks an 18% rise in value on 2012 and equates to £3.5m worth of insurance frauds being uncovered every day.

Simon Douglas, director of AA Insurance said: "These figures are encouraging because they reflect the growing success of the insurance industry in the war against fraud, rather than more fraud taking place."

He said: "This should send a strong signal to anyone thinking of trying it on.

"While you might not end up in prison, if an insurer finds that you have attempted to falsify a claim you'll find it difficult to obtain insurance cover in the future. Insurers don't like dishonest customers."