The ABI's proposals for the establishment of a separate pool to fund long-tail employers' liability (EL) claims will be presented to the government in May.
ABI head of general insurance John Parker said the report, which is being undertaken by PricewaterhouseCoopers (PWC), would be completed within the next few weeks.
Parker said that phase one of the report, which has already been completed, involved gauging the level of support for such a fund. This involved talking to employer groups such as the CBI, FSB, TUC and EEF. He said the idea was seen to have "significant benefits".
Under phase two, PWC has been devising a plan for how the fund will actually work.
Parker said that once this was finalised, the plan would be put to the employer groups with the aim of achieving agreement before putting the proposal to the government.
It is understood that the proposal being formulated by PWC will see the creation of a separate company to pay long-tail claims on a no-fault basis.
The company, in which insurers and employer groups will both have board-level representation, will be funded by a levy on employers and created as a 'centre for excellence', in order to ensure costs are better controlled than under the current system.