Experian, the information services provider, intends to make the claims database, CUE, available to brokers for the first time.
The move will boost fraudbusting in the UK because, until now, CUE's data on known fraudsters and habitual claimants was available mainly to claims handlers.
Experian plans to make the information available either via an on-line service, the Central Processing Unit, or through batch transmission.
As a result, the data will be available to underwriters and brokers, in effect moving fraud detection from back office claims handling units to front end insurance sellers.
CUE itself will be improved by adding two more databases - the 24m-strong car owners database and the perils database, which holds information on flooding and storm damage.
"This will help insurers to combat the huge problem of non-disclosure of past claims and relevant information when consumers are buying new policies," Sue Hall, director of insurance services at Experian explained
"Non-disclosure runs at between 8 and 24% for personal lines insurance depending on the insurer.
"But insurers and brokers can now have rapid access to high-quality data at point-of-sale, enabling more successful risk management."
The ABI estimates fraud costs the insurance industry £650m a year.
Experian bought CUE, the Claims Underwriting Exchange, this week after acquiring all UK assets of US-based ChoicePoint Inc.
There are currently 30 major insurers which daily download their claims information on to CUE.
It is expected the improved database will be available from March, but whether high street brokers will receive it depends on Experian striking a deal with a software house.
The Car Data Check database names the owners of 24m vehicles in the UK.
It confirms a vehicle's full specification as recorded by the Driver and Vehicle Licensing Agency (DVLA), and identifies whether a vehicle has been stolen, subject to a total loss claim, exported or scrapped.
As well as providing valuations and mileages, Car Data Check identifies grey imports, colour changes, previous keepers and dates of change of keeper.
The Perils Data Portfolio gives information on flooding, subsidence, storm damage, fire and theft for properties in the UK at individual postcode level.
Storms and floods provide ideal cover for fraudsters because loss adjusters and insurers are usually inundated by claims.
The database can be used to improve ratings, analyse and validate claims, and allow more comprehensive exposure analysis.
