Desire for ‘perfect insurance self' leads Brits to non disclose

One in 14 of us who have taken out insurance has knowingly misled our insurers when completing application forms, according to research by AXA.

In a desire to present their ‘perfect self' to insurers and keep their policy premiums low, more than one in 10 insured women have stretched the truth about their weight (11%), while over one in 20 have hidden any previous or current feelings of depression.

In total, 7% of Brits who have purchased insurance have misled their insurers about their lifestyle habits and previous medical conditions, despite the fact that a number of these conditions will not necessarily affect their premium. Effectively, this means that 1.5 million people in Britain potentially face having their claim declined should they need to make one.

The most common insurance inaccuracy is about alcohol intake - particularly for men, who are 25% more likely to understate their consumption

Almost one in 10 of us don't disclose our smoking habits

Women (more than one in 10) are twice as likely not to disclose their real weight than men

The younger generation are the most likely to be inaccurate, with more than one in nine 18-34 year olds admitting to this, while the over 55s are the most accurate

One in 20 of us keep quiet about previous or current depression and one in 30 about minor back problems

The research shows that a series of non-disclosure myths surrounding insurance costs and health and lifestyle habits are discouraging many people from protecting themselves. Today, less than half the British population (49%) have any form of life insurance, critical illness, health insurance or income protection to cover themselves if things should go wrong - just 45% of women compared to 53% of men.

Many people who have non-disclosed when purchasing insurance (51%) are simply too embarrassed to reveal personal information during the application process, particularly women (65%), while some fear being turned down if the truth is revealed (17%).

AXA points out that 25% of the British population incorrectly believe that they will face hefty premium increases if they are honest about particular lifestyle habits or medical conditions (particularly men who were 50% more than women to believe this). These include high blood pressure (55%), high cholesterol levels (47%), asthma related to smoking (50%) or if they have experimented with drugs in their past (48%).

People also believe high insurance premiums would be charged if they suffer from any history of depression (39%) or back problems (34%), and more than a quarter of people (29%) thought they would be penalised with higher premiums if they had ever previously contracted a sexually transmitted disease. While these conditions are likely to affect a large proportion of the population, AXA confirms that they are unlikely to have significant impacts on their premium costs and in some cases will have no impact at all.

AXA believes that the reasons people continue to mislead their insurers are based on misconceptions about how insurance works. Iain Mallon, Head of Protection at AXA said: "Most people quite rightly assume that insurance premiums are based on medical history and certain lifestyle elements. What people wrongly assume is that these normal behaviours and typical medical conditions are based on that of a perfect person, one with a healthy lifestyle and no medical problems at all. In the UK today 53% of people are overweight, one in five people suffer from depression, 80% of us suffer from some form of back pain and 50% of people in the UK have high cholesterol, which shows that the perceived perfection is not necessarily the average upon which insurance comparisons are based.

"Insurers are not looking for reasons not to pay out. Our business is designed to support people not constrain claims. However, quite simply if your insurer finds out you have deliberately not disclosed relevant information, they may not be obliged to pay out the full amount. Insurance policies are there to protect people in times of need, without this reassurance in place, people may find themselves in a very difficult position."