Discussing the figures, ABI's director general Stephen Hadrill said the report revealed how insurance companies should "address the issue" of households not taking out insurance.
He also said: "A lack of spare cash is the biggest factor holding back the purchase of insurance by lower income households.
"In early 2008 we will launch a new campaign, with a special emphasis on insurance with rent schemes, improved financial education and easier access to insurance for customers with particular needs."
The ABI was formed in 1985 to encourage high standards of customer service and the implementation of public policy in the insurance industry.
Based in London, the association represents the interests of around 400 insurance companies across the UK.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.