Categories: Press Releases

by Brian Hanley

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PRESS RELEASE

29th November 2023

FOR IMMEDIATE RELEASE

Major insurance fraud conference today but how serious are insurers really about detecting and reporting it?

 

  • Last year only 98 recorded crime incidents of insurance claim fraud reported to the Gardaí according to Central Statistics Office figures.
  • “We regularly hear from insurers about fraudulent and exaggerated claims being as high as 20% and yet those reported to the Gardaí are less than half of one percent. Something doesn’t add up.”
  • “Perhaps it is easier [for insurers] not to resource fraud detection and simply cite fraud as a reason not to reduce premiums?”

 

Today the 11th annual Insurance Ireland Fraud Conference takes place. Commenting on today’s conference Michael Magner, owner of the Vienna Woods Hotel in Cork and board member of the Alliance for Insurance Reform said: “what likely won’t be discussed in the level of fraud that is actually reported to the Gardaí. Last year only 98 cases were reported to the Gardaí according to the Central Statistics Office.”

He continued: “we know from Personal Injury Assessment Board (PIAB) figures that there were 18,453 claims received by them in 2022. The number of recorded insurance fraud cases in 2022 amounts to half of one percent (0.53%) of claims. This contrasts with estimates from insurers that “approximately 20% of the personal injury claims they receive could be fraudulent or exaggerated.”[1]

Alliance Board member and CEO of the Federation of Irish Sport, Mary O’Connor noted how “we regularly hear from insurers about fraudulent and exaggerated claims being as high as 20% and yet those reported to the Gardaí are less than half of one percent. Something doesn’t add up.”

“There is one proactive insurer in the market that regularly speaks out on this issue and clearly resources its fraud detection unit but there is stoney silence from the others. Perhaps it is easier not to resource fraud detection and simply cite fraud as a reason not to reduce premiums but this can’t continue. The reality is that it is policyholders that are picking up the tab for this lack of commitment to pursue fraudulent claims, not the insurers.”

As part of a whole-of-society approach the Gardaí established its insurance fraud office to facilitate and streamline the reporting of suspected insurance fraud. It is imperative insurers adequately resource their fraud detection units and adopt a strict policy of not settling suspect claims.

To do anything less is to merely pay lip-service to the harm insurance fraud causes businesses and communities across the country.

—ENDS—

FOR FURTHER INFORMATION CONTACT: contact@insurancereform.ie or Alliance CEO, Brian Hanley at 086 8620 974.

Notes:

  1. The Alliance for Insurance Reform brings together 46 civic and business organisations from across Ireland, representing over 55,000 members, 700,000 employees, 614,000 volunteers and 374,000 students in highlighting the negative impact of persistently high premiums and calling for real reforms that will quickly reduce liability and motor insurance premiums to affordable levels and keep them that way.
  1. Latest data from the CSO shows that there were 98 recorded crime incidents of insurance claim fraud in 2022. The numbers since records began in 2019 set against the number of personal injury claims recorded by PIAB for the same period are as follows:

Insurance Fraud Reported Crimes                  Rec’d claims by PIAB                         %

2019:                    153                                                                    31,072                                 0.49

2020:                    120                                                                    26,009                                 0.46

2021:                    84                                                                       21,410                                 0.39

2022:                    98                                                                       18,453                                 0.53

[1]One-fifth of motorists know someone who has made dodgy motor insurance claim, survey reveals

https://www.breakingnews.ie/ireland/over-20-of-motorists-have-or-know-someone-who-has-exaggerated-an-insurance-claim-1476857.html