The ABI is to step up its data-sharing initiatives after a survey revealed that around eight million holidaymakers have made fraudulent claims on travel insurance policies.
The survey, carried out by Direct Line, found that 15% of policyholders admitted they had falsely added items to a genuine claim. A further 5% said they had made a claim up completely.
The top five bogus claims made by policyholders are: sunglasses (27%); luggage (18%); medical costs (17%); mobile phone (14%); and camera (10%).
Direct Line said: "Dishon-esty ranked high among British holidaymakers, who claimed for items ranging from designer sunglasses, Gucci luggage and even medical bills."
But just 62% of insurers recognised the fraudsters and rejected the claims, or asked for additional documentation that led to the claim not being paid, Direct Line said.
ABI head of financial crime prevention Debra Weekes said: "Effective use of tools such as electronic data sharing really make a difference and work on a new industry solution is now proceeding apace."