ABI anti-fraud initiative moves forward with database plan
The ABI has moved a step closer to the establishment of an industry-wide anti-fraud database, after drawing up a shortlist of four potential suppliers.
The ABI has received formal responses from IBM, ISO, CSC and Experian.
A sub-group of the anti-fraud committee is scheduled to meet on the 22 July to consider the proposals.
The sub-group will then report back to the rest of the anti-fraud committee with its recommendations.
The ABI is expected to announce its chosen supplier by the end of August.
ABI head of financial crime prevention Debra Weekes said the ABI would then "enter a design phase" with the chosen supplier.
"The chosen supplier will work with a sample of insurers and then produce a proof-of-concept model," said Weekes.
A number of anti-fraud initiatives are currently being considered by the ABI.
Among the ideas are the formation of an approved panel of fraud investigators and the establishment of the UK equivalent of the US National Insurance Crime Bureau (NICB).
Research carried out by the ABI earlier this year revealed that fraudulent claims on motor and household insurance cost insurers and policyholders £20m a week.
According to the survey, the most common reason given by fraudsters to justify cheating was "most people do it" (23%). Other reasons given were "it doesn't harm anyone personally" (22%), "insurers can afford it (20%), and "you are unlikely to get caught" (16%).
Responding to the results of the survey, the ABI said "life is about to get even tougher for insurance cheats".