'People should not have to absorb insurance fraud costs into their premiums'

According to the CSO, there were 98 insurance fraud cases recorded by An Garda Síochána in 2022, compared to 18,453 personal injury claims in the same year. 

Making a false insurance claim should become as socially unacceptable as smoking indoors, advocates have said, after a “significant new protocol” aimed at clamping down on fraud was signed on Tuesday.

Signed by An Garda Síochána, Insurance Ireland, and the Alliance for Insurance Reform, the memorandum of understanding sets out the process for reporting suspected insurance fraud and aims to ensure a coordinated and consistent approach to assessing and investigating suspected frauds.

Alliance for Insurance Reform CEO Brian Hanley said that insurance companies should increase their fraud investigation resources and adopt a policy of refusing to settle suspect claims.

“Settling could be a short-term win but costs more in the long term,” he said. “Building on it is important.

“It’s another positive development in reforming the insurance landscape.” 

According to the CSO, there were 98 insurance fraud cases recorded by An Garda Síochána in 2022, compared to 18,453 personal injury claims in the same year. 

The alliance has said that while insurers expect gardaí to step up in preventing it, they also have a role to play.

It is urging insurance companies to challenge more suspect claims in court, as a more robust examination of suspect claims would benefit all stakeholders.

The alliance also praised An Garda Síochána for its “proactive approach” in developing the memorandum of understanding, given the harm that fraudulent claims have on both businesses and customers in their premiums.

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The memorandum was signed in the Department of Finance in the presence of the minister of State with responsibility for insurance Jennifer Carroll MacNeill.

“People should not have to absorb insurance fraud costs into their motor, home or business premiums,” she said. 

“We are determined to change the culture and practice of insurance fraud in Ireland. Today is an important step in that.” 

Ms Carroll MacNeill said the cooperation between gardaí, industry, and the reform alliance should help stamp out the harmful effects of insurance fraud, which will “ultimately benefit consumers”.

This latest step comes as part of wider Government reforms to the industry, which has included the introduction of personal injuries guidelines and the enhancement of the Personal Injuries Assessment Board.

However, despite these reforms, it has been claimed that consumers and businesses are not yet fully seeing the benefits of the measures.

Mr Hanley added: “The missing piece is the reduction in premiums. 

"Premiums are not going down in the area of public liability, in particular. 

"And it’s time policyholders to see the benefit.”