It follows a working group with the British Insurance Brokers Association (Biba), the Institute of Insurance Brokers (IIB) and several comparison websites.
The ABI said the guidance is a prompt for firms to enhance their ability to detect and disrupt fraud at application and should help to avoid accepting customers who are applying fraudulently.
It expects this to complement the established industry capability in detecting fraud when claims are made and added it was another piece of the jigsaw in the fight against fraud.
The ABI also said that the guidance will help insurers, brokers and comparison sites to better identify some of the danger signs of possible fraud at the proposal form stage, such as:
• differing risk and correspondence addresses,
• fake and tampered with documents.
The guidance will be available from 27 October and circulated widely via all the trade association and comparison websites.
