The Association of British Insurers (ABI) is establishing a national fraud database to counter the rising incidence of insurance fraud.

The Insurance Fraud Register will contain details of all known insurance cheats and start operating at the same time as UK police launch a fraud insurance investigation unit.

ABI Director of General Insurance and Health Nick Starling says insurers are working harder than ever to protect honest customers against fraud.

“Fraudsters continually look for new ways to con insurers, so we are upping our game,” he said.

The City of London Police, the lead policing agency for fraud in England and Wales, will establish a specialist unit for insurance fraud, funded by ABI members for three years and supported by the National Fraud Authority.

The unit will start from January 1 with 35 specialist detectives and police support staff.

Home Office Crime and Security Minister James Brokenshire says fraud costs the nation around £35 billion ($55 billion) a year and is often used to fund terrorism, drugs and human trafficking.

How the Australian industry is responding to fraud – see ANALYSIS