Pet insurers are to form an industry forum under the auspices of the ABI to tackle rising vets fees and fraud in the pet market.

The body will liaise with organisations such as the Royal College of Veterinary Surgeons.

One pet insurer said: "If you look at the difference in claims frequency and cost of the average claim there has to be pockets of suspicion where there is a mark-up on cost of treatment or vets are over treating."

Average claims throughout the UK vary from £300 to nearly £500, far higher than the relative cost of living.

Another insurer added: "Some vets will see an insured animal come into their practice and see pound signs in their eyes."