The ABI has backed the measures announced by the government today to tackle fraud.
It said the government's response to the Fraud Review provides a platform for a crackdown on the UK's spiralling fraud problem.
But it warned that funding for fraud detection must be increased.
ABI Director General Stephen Haddrill, said: "For too long tackling fraud has been a ‘Cinderella' issue: under-reported and under-resourced. Yet fraud costs every person £330 a year. We are therefore delighted that Government is taking action.
"Public authorities and the private sector must now work together through the leadership of the National Fraud Authority. The insurance industry will play its full part.
Insurers are already uncovering fraudulent claims worth £400million a year, and have set up the Insurance Fraud Bureau to tackle the rise in organised insurance fraud."
Stephen Haddrill warned that more resources were vital: “We strongly support this more strategic approach, but it will be undermined if fraud detection is not given the resources it deserves. Police funding for this work must be enhanced."
