The insurance industry is launching a new investigations body today to tackle fraud, which is estimated at £1.5bn a year on current calculations.

The Insurance Fraud Bureau (IFB) is headed by a former top policeman and will examine some 160 million insurance policies for signs of potential fraud, like staged accidents or arson.

“The growth in organised fraud needs a tough new approach,” said Stephen Sklaroff, deputy director general of the Association of British Insurers.

“The launch of the IFB shows the industry’s determination to expose the organised criminal gangs who use insurance payouts to fund other crimes.”