Bogus claims to cost insurance industry E100m by year end

BOGUS claims will cost the insurance industry over E100 million this year despite a concerted campaign to crack down on fraud.

The rate of fraud is 25% above the European average, according to a study by the Comité Européen des Assurances (CEA), the umbrella body for the insurance industry in Europe.

A spokesperson for the Irish Insurance Federation said yesterday that the final figure for fraudulent claims in 2003 was likely to be in the order of E110m, representing 2.5% of total premiums. This compares to a European average of 2% of claims.