The government needs to tackle the growth in fraud urgently, the ABI said today.
The call comes on the day that the Association of Chief Police Officers (ACPO) estimates that fraud costs the UK economy as much as £20bn a year , £330 for every person in the country.
Insurance fraud alone is estimated to be costing £1.5bn a year.
Speaking at joint ABI/ACPO parliamentary reception today, Stephen Haddrill, the ABI's director general, said: "This ACPO report is a call to arms that the government must respond to urgently. Fraud is hitting every person in the pocket. Insurance fraud alone adds an extra 5% to premiums."
He added: "The industry is working hard to reduce fraud and has set up the Insurance Fraud Bureau. But we cannot do this alone. Britain needs a national fraud strategic authority to spearhead a coordinated approach between the private and public sector, and resources for the police to tackle this growing crime."
