The Financial Ombudsman Service says it has no evidence that fraud among policyholders is any more prevalent than in the past.
Chief Executive Natalie Ceeney said in the Ombudsman News publication that her figures don't show any significant change in the proportion of complaints that the service upholds or rejects. She believes that if attempted fraud was on the increase, more people would get rejected by insurers and then try (unsuccessfully) to get the FOS to overturn this rejection.
Ceeney also said that the only sector where bogus or unreasonable complaints were in any way common was with Payment Protection Insurance, and even that was simply the result of the sheer number of people putting in a claim at all. She even speculated that financial firms such as insurers themselves may contribute to the perception of fraud as a way to distract attention from their own failings.
Of course, the ombudsman figures don't take into account either people who successfully pull off a fraud (which inherently can't be measured), or those who have a bogus claim rejected and accept the verdict rather than put up a fuss and risk getting into trouble.