Government proposals to look at using insurers' money to fund police investigations into fraudulent claims have been met with concern by the ABI.
The proposals form part of the government's wide-ranging review into fraud in the economy. An interim report published this week set out further work that the working group, led by the Treasury, will undertake.
This includes developing a national fraud strategy, looking at ways to increase the amount of fraud that is investigated by the police, and examining how fraud is punished.
These are all areas that the insurance industry has called on the government to address.
ABI head of financial crime prevention Chris Hannant said: "The government has recognised there is a significant problem and a need for clear direction. From this, all other things will follow."
But while he said the proposals were a "step in the right direction", he expressed concern over plans to look at more partnerships between the police, public and private sectors in financing fraud investigations.
He said in addition to the fact that the industry "already pays its taxes", insurers already used a lot of resources in investigating fraudulent claims but without a response from the police.
