Biba described the Greenaway report as an excellent starting point for tackling the issue.
It called on the government to implement the measure recommended in the report to help the insurance industry fight the problem.
Biba chief executive Eric Galbraith said: “The Insurance industry is already working together to fight this menace by seeking ways to improve the Motor Insurers' Bureau's (MIB) database.
“The cost to the industry and many of its customers of implementing the recommendations within the Greenaway report are substantial, but will be ineffective unless the government implements effective new legislation and enforcement powers.”
Norwich Union (NU) also expressed its support for the report's recommendations.
NU customer services director and MIB chairman Simon Machell said the company hoped the recommendations would get the full backing of the government.
“Among the areas where significant improvements can and should be made is the issue of enforcement and penalties,” he said.
“But stricter penalties need to be combined with better enforcement and wider use of an improved Motor Insurance Database.
“We are particularly pleased that a proposal to introduce insurance discs has been rejected as such a system would have been ineffective and also open to fraud.”
