A new unit has been launched today, dedicated to tackling insurance fraud across the UK.

The Insurance Fraud Enforcement Department (IFED) aims combat a criminal threat estimated to be costing the UK economy £3 billion per year – adding on average £50 to each insurance policy.

IFED is an operationally independent unit, run by the City of London Police and supported by the Association of British Insurers (ABI).

It says that detectives and financial investigators are already reviewing a number of cases following referrals from the insurance industry at the end of 2011.

Based at the City of London Police’s New Street office in the capital, the 34-strong team will act on evidence of motor insurance, commercial and public liability fraud and illegal insurance advisers.

A major priority for IFED will be targeting the organised crime groups responsible for much of today’s insurance fraud.

Intelligence reveals these criminal networks are using an increasing number of professional enablers – doctors, solicitors, vets – to expand their operations and increase the threat against the insurance industry.

IFED will also be working to change the public perception of fraud.

Ian Dyson, City of London Police Commander, said: “This is an important day for both the City of London Police and the ABI