Nearly half of the UK population would consider making a fraudulent insurance claim, according to the ABI.
The ABI survey found that 7% of those questioned admitted to claiming fraudulently in the past.
The results were quoted at the National Fraud Seminar organised by North West ALARM - The National Forum for Risk Management in the Public Sector.
Graham Rhodes, of Bolton MBC said: "The claimants feel as though they are taking money from an organisation rather than an individual and this is perceived as far more 'acceptable' conduct, with the public sector still seen as having the 'deepest pocket'.
"However the reality is that the act will come back to haunt them, their colleagues and neighbours, as the money they claim will come out of funds meant for public service delivery that they themselves will doubtless use in the future."
Rhodes also called for the public sector to improve risk management practices. He said: "It is doubtful that the legal profession would wish to be associated with fraud - so having a claims fraud policy which identifies and manages fraudulent claims is vital to ensure that genuine claimants are compensated whilst those who perpetrate fraud are sent away empty handed."
