The FSA is to examine the extent to which information on fraudulent claims is shared by the insurance industry.

FSA financial crime sector leader Philip Robinson told Insurance Times that during 2005 the regulator will be looking to identify areas where information is being shared and where it is not.

This will involve discussions with Biba, the ABI and trade associations in other sectors, he said.

"We will consider whether there is commonality between a particular sector and some of the sectors that are doing well," Robinson said.

"By the middle to the end of the third quarter next year we should have a clear understanding of where things are working and where they are not.

"And we shall have a clear understanding of what can be shared."

Robinson also said that the FSA's supervisors would also begin to ask questions about firms' handling of fraud, dishonesty and money laundering risk.

"Supervisors will be looking at firms' systems and controls in the context of financial crime."

In October, the FSA announced a new fraud policy, charging the industry to do more to improve its defences against financial crime.

It called on firms, trade associations the government and the police to work together to make life more difficult for criminals.