The average cost of an insurance scam has risen 20% to nearly £15,000 in the past year, according to new figures published by the Association of British Insurers today.

Insurance could be used as a loop-hole to help avoid large IHT bills, according to Plymouth-based IFA firm Continuum.

More than half of High Net Worth clients (52%) have been victims of crime in the past 12 months, with their average loss £72,000.

The Financial Conduct Authority has expressed concern that mounting pressure on household budgets may force some customers to cut back on essential insurance, leaving them without protection.