Data hub to combat motor insurance fraud is long overdue

THE Automobile Association has estimated that the cost of motor insurance fraud in Ireland is adding up to €50 to every premium taken out.

While the insurance industry in Ireland regularly campaigns about fraudulent claims, it remains silent on another type of fraud which it could do a lot to eliminate.

As Conor Faughnan of the AA points out: “There is also fraud at the point of purchase, because Insurance Ireland has not yet completed the task of creating an integrated hub for data-sharing amongst providers.”

The system, known as Integrated Information Data Service (IIDS), has still not been fully developed here, although a similar system is already functioning well in the UK and the North.

It is a very useful device and allows its users to confirm the accuracy of penalty points and no-claims discount information provided by customers when they are seeking to renew existing motor policies or take out new ones.

At the moment, Irish motor insurers have to obtain paper copies of documents relating to insurance records, driver licence details, and penalty points. These documents can be easily faked, as can windscreen discs.

While Irish motor insurers are entitled to pursue fraudulent claims, perhaps they should also bring the industry more fully into the 21st century and take the AA’s advice.