The ABI has eliminated IBM and ISO from its shortlist of potential suppliers for an industry wide anti-fraud database.

The remaining companies on the shortlist are Experian and CSC.

The decision was made following a recent meeting of a sub-group of the ABI anti-fraud committee.

A final decision on the preferred supplier has been postponed for one month.

ABI head of financial crime prevention Debra Weekes said this week that an announcement would take place at the "end of September".

It was originally anticipated that the ABI would make its decision by the end of August.

Weekes said that the ABI had to deal with a number of "technical issues" relating to the proposals submitted by Experian and CSC before it could reach a final decision.

When the announcement is made, the chosen supplier will enter a design phase in conjunction with the ABI. This will involve working with a sample of insurers and producing a proof-of-concept model.

Database investments have proved successful in the US, where 93% of the insurance industry by premium volume swaps anti-fraud information.

ISO, which runs anti-fraud databases in the US, recently claimed that the return on investment for US insurers is "at least 50 to one".