Royal & SunAlliance (R&SA) has rejected the use of lie detectors to combat fraud, saying the technology is too costly.

The insurer began a four-month pilot of the Digilog voice risk analysis (VRA) technology on motor claims in March.

John Beadle, R&SA counter fraud manager, said the company decided against using the software because it was not cost-effective compared with its existing fraud detection techniques.

He said: "Our view is that while we were in no doubt that the software worked, it did not give increased savings when compared with existing activities.

"That said, we are constantly reviewing our own capabilities as well as existing and new initiatives to protect ourselves and honest policyholders against fraud."

The Digilog technology, licensed by Capita Insurance Services in the UK, has been tested by some of the industry's major players.

Nine of the 21 companies that piloted the system have signed contracts with Digilog, while six companies, including R&SA, have declined to use the system.

AXA has begun a six-month pilot this month using VRA for household claims.

In June, Highway announced that VRA technology combined with other fraud detection techniques had saved the company £2.6m in claims costs.