The ABI has launched a consultation on the replacement of the existing Motor Insurance Anti-fraud and Theft Register (MIAFTR).
The ABI's motor manager Jo Dagustun said the theft register had been in place since 2 March 1987.
But she said technology had moved on and the
ABI had invited insurers to respond to its draft specifications by 6 December 2002.
"We need to make sure the system delivers and makes use of up to date technology and can be used as a platform for collaboration with the government in vehicle crime activities," said Dagustun.
"We are reviewing its effectiveness and are redeveloping the system with these aims in mind."
The ABI's document outlines benefits of the MIAFTR2, which include immediate electronic match reporting and open architecture for linking to other systems.
The MIAFTR2 will also support the Vehicle Identity Check (VIC) scheme, which will be introduced in April 2003.
Dagustun said the VIC scheme was to ensure written off vehicles did not get back on the road without an identity check.
The document suggests that the MIAFTR2 will be ready for the second quarter of 2003.
It also suggets the existing system would be maintained until no later than 31 December 2003.
Dagustun said that the current consultation would confirm these details.