The Association of British Insurers (ABI) has launched a new “Insurance Fraud Bureau” to expose organised insurance frauds.

The bureau will seek evidence of organised fraud on industry databases and co-ordinate investigations between insurers. Police and other agencies will also be involved in developing and implementing cross-industry intelligence.

A confidential “cheat line” will operate from the bureau on which suspected insurance fraud can be reported.

Bureau Chairman John Beadle says the launch follows the success of a six-month pilot program which involved insurers working together to identify fraud networks. Intelligence sharing and a co-ordinated response to investigations allowed the bureau to build a solid relationship with police and other law-enforcement agencies.

“We are confident that the Insurance Fraud Bureau will play an important part in protecting the honest policyholder,” Mr Beadle said. “We will find, expose and pursue those involved in organised insurance fraud.”

Last year the ABI detected £400 million ($974 million) of fraudulent claims.